The enforcement action targets the 300‑megawatt facility being built by DataOne for the Nebius Group as part of a $17 billion artificial‑intelligence partnership with Microsoft. Regulators observed the generators during a July 29 site inspection, noting that the equipment was absent during the agency’s prior visit in December 2025.
Under the state’s Air Pollution Control Act, any generator with a capacity of 37 kilowatts or more must obtain a pre‑construction permit and a valid operating certificate. DataOne had neither a permit nor an application on file, according to the DEP, prompting the agency to issue what its commissioner, Ed Potosnak, called “the largest ever enforcement action against a data center in New Jersey.”
The fine exceeds $1 million, making it one of the nation’s biggest penalties for a data‑center‑related violation. The move follows a recent $2.5 million fine in Virginia for a Microsoft data center that exceeded emissions limits, signaling heightened scrutiny of high‑energy facilities.
DataOne says the natural‑gas generators are a temporary measure until its planned Bloom Energy fuel‑cell system becomes operational. Fuel cells convert natural gas to electricity electrochemically, avoiding combustion and emitting fewer pollutants such as nitrogen oxides and sulfur oxides, though the company acknowledges the Vineland site could still release more than 2 billion pounds of carbon dioxide annually.
The company has already faced stop‑work notices for constructing a liquefied natural gas tank and fuel‑cell units without city approval. In response, a DataOne spokesperson said the firm will apply for the required air permits for the temporary generators and is in ongoing talks with the DEP about the fuel‑cell transition timeline.
Local officials have expressed mixed reactions. Vineland’s mayor and city council president approved a partial tax exemption for DataOne as part of a five‑year plan, citing the project’s promise to create over 200 permanent jobs and become a major taxpayer. The company also pledged community benefits, including weekly meals from a vertical “giga‑farm” that would use waste heat and carbon dioxide to grow produce.
Community opposition remains strong. Residents such as Zac Landicini, who leads a grassroots campaign, say they feel misled by the developers’ promises. Neighbors have complained about constant humming and metallic noises, with some describing a “whining” sound that has spurred a class‑action lawsuit. Others worry about air emissions, water use, and potential declines in property values.
Governor Phil Sherrill’s administration has recently signed legislation requiring data‑center owners to report water and energy usage and to develop “clean‑energy” plans that reduce grid strain, noise, and pollution. The Vineland case is the first major test of those new guardrails.