controversial data center in Vineland

New Jersey environmental officials have fined the operator of a sprawling data center in Vineland over $1 million for installing dozens of gas-powered generators without the required permits and ordered the company to get the permits within 45 days or cease operations.

State inspectors visited DataOne’s facility on July 29 and discovered 62 1,982-kilowatt generators that had not been there during their last inspection in December, the Department of Environmental Protection announced Tuesday. The firm’s failure to get needed permits — required of any generator with a capacity of 37 kilowatts or higher — violated the New Jersey Air Pollution Control Act, and the department levied a $1.07 million fine.

“This enforcement action — by far the largest ever taken against a data center in New Jersey and possibly one of the largest such actions in the nation — sends a clear message that these facilities will not be constructed or operated with impunity in this state,” said Ed Potosnak, the department’s commissioner.

Floodlight, a nonprofit newsroom that focuses on climate news, first revealed the tractor-trailer-sized unpermitted generators last month after discovering them with thermal drones.

Asked to comment, DataOne spokesperson Naomi Race said, “As announced in the Spring, we are transitioning to low-emission, quiet fuel cells as part of the site’s permanent power solution and have the necessary approvals in place for this solution. While we disagree with the temporary generator determination, we will apply for the air permits for the temporary generators and are in communication with the Department of Environmental Protection regarding its findings and the fuel cell transition timeline.”

Construction of its mammoth “AI factory,” which will include 14 “data halls” and have a maximum capacity of 350 megawatts, is expected to be done in late December, according to a company website. Nebius Group, which is based in Amsterdam, made a $17.4 billion deal with Microsoft last year to operate the 587,980-square-foot campus through 2031. The data center is expected to be one of the largest on the East Coast when complete.

The project has drawn widespread complaints since workers broke ground six months ago, with neighbors suing DataOne over noise and critics packing municipal meetings to voice concerns. City officials also halted work last month after crews began constructing a liquefied natural gas tank and fuel cell units before permits were approved.

Gov. Mikie Sherrill said the violation and fine announced Tuesday show why lawmakers must put guardrails in place for data centers. Sherrill, a Democrat who took office in January, has signed new laws intended to blunt the impact data centers have on electric bills and expand transparency by requiring semiannual reports on their water and energy usage. She also has sought to limit data center construction.

“We are putting power in the hands of the people and ensuring this industry works for us, on our terms — not theirs. Data centers will pay their fair share for energy, be accountable for their water and energy use, protect our environment, create good-paying union jobs, and invest in communities. New Jerseyans have my firm commitment, and today’s action is an example,” Sherrill said in a statement.

Sherrill stressed to Politico this week that she opposes a statewide moratorium on data center construction, leading to criticism from environmental activists who are pushing for such a ban.

“It’s past time for Sherrill to act to protect New Jersey communities from the interests of corporations,” said Matt Smith, the state director at Food and Water Watch. “The governor must hold billionaires accountable, pass the Polluters Pay Act, and enforce a statewide moratorium on data centers.”

Sophie Nieto-Muñoz contributed.