New Jersey fines DataOne $1.1M over 62 unpermitted gas generators

New Jersey has ordered DataOne, the operator of one of the East Coast's largest planned data centers, to pay a $1.1 million fine for secretly installing and running gas generators in violation of the state's Air Pollution Control Act.

What the imagery showed

An August investigation by The Guardian and Floodlight News published thermal drone footage showing 45 of the 62 generators at DataOne's Vineland site running. None held permits required for units of 37 kilowatts or more; they ran at 1,982-kilowatt capacity, over 50 times the state threshold.

The story began when a farmer photographing a neighboring golf course spotted "some type of unit" on satellite imagery of DataOne's land. Inspectors who visited the 2.6 million-square-foot complex in July found tractor-trailer-size generators that the New York Times called "impossible to miss."

The fine and its terms

Department of Environmental Protection (DEP) Commissioner Ed Potosnak called the action "by far the largest ever taken against a data center in New Jersey" and vowed data centers would not be "constructed or operated with impunity in this state." DEP officials said such generators emit pollutants that can worsen asthma, trigger heart attacks and cause early deaths.

DataOne has 45 days to apply for the permits or shut down, but may keep running the generators meanwhile.

Residents call the fine pocket change

Nichole Gardner, co-chair of the nonprofit Sustain SJ, told Ars Technica the penalty is "insufficient, both in dollar amount and enforcement," and wants the site shut down. Residents also know the data center powers Microsoft AI tools such as Copilot.

"What have we been breathing in since they've been running these generators without permits?" resident Tiffany Leone-Vespa asked the Times. "What's $1.07 million? They should have done it for each generator. They're billionaires. It's like pocket change."

What happens next

DataOne told the Times it disagreed with the fine and will apply for air permits for its temporary generators, which it plans to replace with low-emission, quiet fuel cells.

New Jersey has more than 80 data centers planned or under construction. The state recently ended data center tax credits worth $250 million, and Sustain SJ now seeks a statewide moratorium on new projects.