DataOne fined $1.07m after New Jersey environmental officials concluded the company operated dozens of gas-powered generators at its Vineland datacenter without the required state permits, following a visual investigation that drew attention to the site.
The New Jersey Department of Environmental Protection announced the $1.07 million civil penalty on Tuesday, saying the action “sends a clear message that these facilities will not be constructed or operated with impunity in this state,” according to Commissioner Ed Potosnak.
The Microsoft-linked artificial intelligence datacenter has faced pushback since construction began in 2025, including noise complaints, questions over permitting and a contentious zoning process. The facility sits about 40 miles outside Philadelphia and is intended to supply AI computing to Microsoft under a $17 billion agreement with Nebius, a Netherlands-based AI infrastructure firm.
DataOne fined after drone findings
State officials said the tractor-trailer-sized generators were not seen during a December inspection but were observed in July. Around the same time, a thermal drone survey documented 45 of the site’s 62 generators in operation. The agency later confirmed it had not issued permits for the machines, which can emit pollutants linked to asthma, heart attacks and premature death.
At the time of the drone findings, Bruce Buckheit, a former Environmental Protection Agency air enforcement chief, said the company’s actions violated federal law and urged DataOne to halt generator operations immediately.
Under the state order, DataOne must apply for and obtain the necessary air permits or cease operations. A department spokesperson said the company has 45 days to comply. Regulators will allow the generators to continue running during that period.
“I suspect the company is breathing a sigh of relief at being allowed to continue,” Buckheit said after reviewing the order.
Criticism from environmental advocates
Environmental organizations questioned whether the enforcement response was sufficient. Matt Williams of Sustain SJ said that while the fine may be a record for the department, a $1 million penalty would not significantly impact a company like DataOne. He argued that immediately shutting down operations would be more appropriate.
In a joint social media statement, several New Jersey activist groups asked how the project was able to install and operate dozens of generators before state intervention, noting that the public only learned of the activity after an independent outlet flew a drone over the facility.
Company response and next steps
In response to the fine, a DataOne spokesperson said the company is transitioning to low-emission, quiet fuel cells for permanent power and has approvals for that solution. The spokesperson said DataOne disagrees with the determination regarding the temporary generators but will apply for air permits and is in contact with regulators about the findings and the fuel cell timeline.
The company did not say whether it plans to appeal the penalty.
Environmental organizations questioned whether the enforcement response was sufficient in the context of broader climate risks, echoing concerns raised in reporting on climate resilience.
