NJ high-density data center hit with $1 million fine, as critics say this is exactly the problem
⚠️ DataOne faces a $1.07 million DEP fine over 62 unpermitted generators.
➡️ State inspectors saw generators in July at the Vineland facility, DEP says in September.
🔴 Environmental advocates are again calling for a statewide pause on new data center construction.
TRENTON – The operator of one of New Jersey’s most sprawling high-density data centers has been fined over a million dollars, stemming from dozens of generators on site.
DataOne expanded its Cumberland County facility in Vineland last winter, as the state’s largest operating data center.
On Tuesday, the state Department of Environmental Protection announced a $1.07 million fine for violations of the New Jersey Air Pollution Control Act.
The company is accused of installing and operating 62 large, natural-gas power generators without first securing the required DEP permits.
State inspectors saw the generators during a visit on July 29. Before that, the last site inspection was in December.
Read More: NJ moves to stop AI data centers from driving up electric bills
62 generators led to a $1.07 million fine
DataOne violated the Air Pollution Control Act by installing and operating 62 1,982-kilowatt stationary reciprocating generators (known as engines) without first securing a preconstruction permit and valid operating certificate.
Those approvals are required for any generator with 37-kw capacity or higher, according to the Administrative Order and Notice of Civil Penalty Assessment.
Department of Environmental Protection Commissioner Ed Potosnak said the "record" fine “sends a clear message that these facilities will not be constructed or operated with impunity in this state.”
Another recent law is aimed at boosting transparency.
In August, Gov. Mikie Sherrill signed a law that requires every data center in the state to report its water and electricity usage to the Board of Public Utilities, every six months.
The Vineland data center was built for about 350 megawatts of power usage.
A five-year deal involving DataOne, Microsoft and Nebius Group is worth between roughly $17 billion and $19 billion, as reported a year ago by Data Center Dynamics.
Read More: NJ data centers must report electricity and water use
Advocates renew calls for a data center moratorium
New Jersey advocates and organizations, including Pinelands Alliance, responded to the fine with renewed calls for a statewide pause, or moratorium, on data center construction.
“People have to live with it; we’re going to have to deal with the contamination, we have to deal with constant exposure. That should come first,” Pinelands Alliance Executive Director Jaclyn Rhoads said to New Jersey 101.5 on Tuesday.
“Examples like this show us that you cannot move that fast — it is not fast enough. So we are asking again, for consideration by all the legislature and the governor, to pass a moratorium, so we can avoid any future problems like this coming online,” Rhoads continued.
She also pointed to the recent diesel spill at a separate data center in Secaucus, which had the community scrambling to clean up over 5,000 gallons from a drainage channel, according to local officials.
“Right now, the model for data centers companies is to get these facilities built, turn them on, and then pay a fine if they get caught breaking the law,” Climate Revolution Action Network Executive Director Ben Dziobek said in a separate written statement.
“The governor calls her data center plan ‘the most comprehensive’ in the nation, but that’s not saying much when a data center gets a slap on the wrist and is allowed to pollute again once they have the right permits in place,” Dziobek added.
Read More: NJ roster of data center bans adds 4 more NJ towns this week
In the meantime, there’s a growing roster of communities that have adopted their own bans - or in some cases, pauses - on any data center construction.
Pinelands Alliance already had a list of more than 70 communities.
Rhoads said they are in the process of updating their records, as they have been made aware of another two dozen or soi — which means the state has likely surpassed the milestone of 100 such ordinances.
It’s a rare non-partisan issue, rooted in concerns over electric bill spikes and resource draining.
New Jersey residents of varied political backgrounds have appeared at various public meetings, to criticize sprawling data centers, and the unclear long-term impact such facilities would have on their communities.
Another leading environmental non-profit called the fine "a vital next step in holding Big Tech accountable."
“Holding predatory data centers accountable is essential to protecting New Jersey families, local businesses and our shared environment. Across our state, power-hungry data centers are jacking up electricity costs, threatening our quality of life, polluting our air and consuming vast amounts of local water," New Jersey League of Conservation Voters Interim Executive Director Allison McLeod said in a written statement.
A request for comment from Nebius was not answered as of Wednesday.
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