New Jersey data center fine tops $1 million over unpermitted generators

DataOne hit with $1 million fine

New Jersey has fined DataOne $1.07 million for installing and operating 62 large natural-gas generators at its Vineland AI data center without required state air permits. The New Jersey Department of Environmental Protection announced the enforcement action on Sept. 22.

DEP said the penalty is the largest enforcement action ever taken against a data center in New Jersey and possibly one of the largest of its kind nationwide. The action followed a July 29 inspection in which state officials found the generators operating without required preconstruction permits and operating certificates.

What is DataOne building?

DataOne is developing a large AI computing campus in Vineland, New Jersey. Current company information describes the project as a hyperscale AI factory with a maximum capacity of 350 MW upon full delivery.

DataOne says final delivery of all 14 data halls is expected by the end of December 2026. The site includes extensive computing, power, and cooling infrastructure designed to support high-density AI workloads.

DataOne’s 62 generators

State inspectors found 62 large natural-gas generators at DataOne’s Vineland site during a July 29 inspection. Each generator is rated at 1,982 kW, far above New Jersey’s 37 kW threshold for certain stationary engines used to generate electricity.

State rules require a preconstruction permit and a valid operating certificate for equipment subject to those requirements. DEP said the generators were not observed during its December 2025 inspection, and its enforcement order gives DataOne 45 days to obtain the required approvals or to cease installation or operation of the equipment.

Why do air permits matter?

Air permits allow regulators to review pollution-producing equipment before it is installed or operated and impose requirements intended to protect air quality. New Jersey requires covered significant sources to obtain a preconstruction permit and an operating certificate.

Natural-gas engines can emit nitrogen oxides, carbon monoxide, volatile organic compounds, particulate matter, and greenhouse gases. EPA says pollution from stationary engines can contribute to respiratory problems, including asthma.

Drone footage brought public attention

A nonprofit newsroom called Floodlight used thermal drone footage to examine the Vineland site and reported that at least 45 of the 62 generators appeared to be running in mid-August.

Drone footage drew public attention to the generators, but DEP inspectors had already found 62 units during a July 29 inspection. The agency later issued a $1.07 million penalty and set a 45-day compliance deadline.

Fun fact: Floodlight first publicly revealed the tractor-trailer-sized unpermitted generators after finding them with thermal drones, according to New Jersey Monitor.

DataOne responds to fine

DataOne says it disagrees with the state’s finding that its temporary generators were operating illegally. Even so, the company says it will apply for the required air permits and is talking with the DEP about the timeline.

DataOne plans to switch to low-emission, quiet fuel cells for its permanent power solution, which it announced in the spring. The company says it has the necessary approvals in place for that fuel cell plan.

Fuel cells as a fix

Fuel cells generate electricity through an electrochemical process rather than conventional combustion, which can sharply reduce pollutants such as nitrogen oxides and carbon monoxide compared with traditional combustion engines. DataOne says fuel cells are intended to become the permanent power solution at the Vineland site.

Natural-gas-fueled fuel cells can still produce carbon dioxide because they continue to use a fossil fuel. They may reduce some emissions compared with conventional gas generation, but they do not eliminate the project’s carbon footprint or the broader debate over its local impact.

Neighbors hear a constant hum

People living near the Vineland site have complained about a low, steady hum that they say never really stops, even inside their homes. Some say it follows them indoors at all hours, interrupts their sleep, and makes the neighborhood feel different.

Residents have also raised questions about how the project was approved and how quickly it expanded beyond early plans. A local advocacy group called Sustain SJ has organized around those concerns and pushed for greater scrutiny of the development.

Noise complaints trigger investigation

In March, the Cumberland County Department of Health said it was investigating residents’ complaints about humming near the DataOne site and had not yet confirmed that the data center was the source or that a noise violation had occurred.

Residents later filed litigation over the site’s noise, describing persistent sounds that they say interfere with sleep and daily life. DataOne has said it has taken noise-reduction measures and maintained that its operations comply with applicable noise limits.

Stop-work orders at the site

Vineland officials issued 2 stop-construction orders at the data center in August after saying work had started on a liquefied natural gas tank and fuel cell units before city approval. The orders added another layer of conflict to a project that was already facing public pushback.

The project has also changed in size and scope as DataOne’s power plans, cooling systems, and later phases have come under greater scrutiny. Current company and news descriptions refer to a 350 MW AI factory with 14 data halls, along with major power and cooling infrastructure.

New Jersey tightens rules

Governor Mikie Sherrill has signed new laws aimed at data centers in New Jersey as the industry continues to grow. One law requires them to report their energy and water use to the state twice a year.

Another law requires large data centers to cover a greater share of their electric grid costs so other customers do not bear the burden. Sherrill says the state wants accountability, not special treatment, and that communities should have a voice, with the DataOne fine as part of that broader push.

Other states take action

Texas Gov. Greg Abbott paused new data center grid connections in August, then on Sept. 21 ordered a statewide halt to new state-issued permits while regulators audit projects’ electricity demand, water use, and other impacts.

California Gov. Gavin Newsom signed 7 data center bills addressing electricity costs, water and energy reporting. His administration called the package the nation’s most comprehensive and said it would give communities greater information and control.

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What comes next for DataOne?

DataOne has 45 days to apply for and get permits or stop running the generators, according to the New Jersey Department of Environmental Protection. The facility can keep operating during that time, which some critics say is too generous.

Environmental groups want the state to go further and pause new data centers while it studies their effects. The debate over AI growth, energy use, and local impact is far from over, and the record fine has made Vineland a national example of that fight.

Curious how these power battles are playing out beyond New Jersey? Check out why Texas transmission vote raises landowner concerns over new West Texas power corridors.

Should states hit pause on new data centers while they study the impact? Share your thoughts in the comments.

This slideshow was made with AI assistance and human editing.

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