New Jersey Fines DataOne $1.07 Million for Permit Violations

The New Jersey Department of Environmental Protection fined DataOne $1.07 million for violating the New Jersey Air Pollution Control Act at its Vineland facility. The penalty, announced by Governor Mikie Sherrill, is the largest enforcement action against a data center in state history. It follows a July 29 site inspection that revealed the facility installed and operated 62 natural-gas generators, each with a 1,982-kilowatt capacity, without required preconstruction permits or operating certificates.

The facility is part of a deal valued between $17 billion and $19 billion involving the Nebius Group and Microsoft to provide AI computing power. DataOne disputed the ruling, stating the generators were a temporary measure while the site transitions to low-emission fuel cells. The state has ordered the company to obtain the necessary permits immediately or cease operations of the engines.

This action coincides with a broader state effort to regulate the industry. Governor Sherrill recently signed a law requiring data centers to report water and electricity usage every six months to the Board of Public Utilities. Other recent legislation requires data centers to provide their own clean energy and establishes a separate rate class to protect other ratepayers from rising costs.

Environmental groups, including the Pinelands Alliance, are using the fine to renew calls for a statewide moratorium on data center construction. While the administration has resisted a moratorium, nearly 100 New Jersey municipalities have already implemented local bans on such facilities.