New Jersey’s Department of Environmental Protection (DEP) has imposed a $1.07 million fine on DataOne, a data center operator in Vineland, for installing and operating 62 large natural gas-powered generators without the necessary state permits. This action represents the largest enforcement measure ever taken against a data center in the state.
The DEP’s inspection on July 29 revealed that these 1,982-kilowatt generators were not present during the previous inspection in December 2025. Under New Jersey’s Air Pollution Control Act, any generator with a capacity of 37 kilowatts or more requires a preconstruction permit and a valid operating certificate. The unpermitted generators, therefore, constituted a significant violation of state environmental regulations.
DEP Commissioner Ed Potosnak emphasized the significance of this enforcement, stating, “This enforcement action… sends a clear message that these facilities will not be constructed or operated with impunity in this state.” He further highlighted the administration’s commitment to holding data centers accountable for their environmental impact.
DataOne has been given 45 days to apply for the required permits or cease operations of the generators. The company has indicated plans to transition to low-emission fuel cells as part of its permanent power solution. A spokesperson for DataOne stated, “We will apply for the air permits for the temporary generators,” while expressing disagreement with the DEP’s determination.
The Vineland data center project, backed by a $17 billion deal with Microsoft, has faced ongoing scrutiny from local residents and environmental advocates. Concerns have been raised about potential noise, air pollution, and the overall environmental impact of the facility. The recent fine has intensified calls for stricter oversight and regulation of data center operations in the state.
Governor Mikie Sherrill has underscored the need for accountability in the data center industry, stating, “We are putting power in the hands of the people and ensuring this industry works for us, on our terms – not theirs.” She has also signed legislation aimed at mitigating the environmental and economic impacts of data centers, including measures to protect ratepayers and communities.
Environmental groups continue to advocate for more stringent regulations and proactive monitoring of data center developments. Ben Dziobek, executive director of the Climate Revolution Action Network, called the fine a “great step forward” but emphasized the need for continuous oversight to prevent future violations.
As the data center industry continues to expand, balancing technological advancement with environmental responsibility remains a critical challenge for regulators, companies, and communities alike.