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New Jersey’s Department of Environmental Protection slapped DataOne with a $1.07 million fine for running 62 natural gas generators without permits at its massive Vineland data center site. The penalty, assessed on September 22, marks the largest enforcement action against a data center in the state’s history.
The generators in question: 62 Caterpillar G3516H engines, each rated at 1,982 kW, producing roughly 123 MW of combined capacity. Under New Jersey regulation, any generator rated at 37 kW or above requires preconstruction permits and operating certificates. These were 53 times that threshold, running without paperwork.
How 123 MW of generators flew under the radar
The DEP first visited the Vineland site in December 2025. A follow-up inspection on July 29, 2026 revealed the full scope of the unauthorized installations. The generators had been set up at the construction site without the required preconstruction permits or operating certificates mandated by state law.
DataOne has pushed back on the characterization, arguing the generators should be classified as temporary units. That distinction matters because temporary equipment often falls under lighter regulatory requirements. The DEP apparently disagreed, to the tune of seven figures.
The generator operations first came to public attention through a report by Floodlight in August 2026. Stop-work orders were also issued that month, though those were tied to separate, unrelated installation issues at the site.
DataOne says it has agreed to pursue the necessary permits for the gas generators while working toward a permanent solution using Bloom Energy fuel cells, which the company already holds permits for.
The $17 billion project behind the fine
The Vineland facility is being developed under a $17 billion partnership with Microsoft and is designed to serve Nebius Group, targeting a total capacity of 300 to 350 MW. DataOne has marketed it as New Jersey’s largest data center and the first in the state to aim for entirely self-generated power.
Construction kicked off in early 2025, and initial project phases had already received approval. The gas generators appear to have been installed to provide interim power during the construction phase, before the permanent fuel-cell infrastructure comes online.
Local residents in Vineland have raised concerns about noise and air pollution from the facility. Natural gas generators of this scale produce nitrogen oxides, carbon monoxide, and other pollutants that New Jersey’s permitting process is specifically designed to monitor and limit.
DataOne’s pivot toward Bloom Energy fuel cells for permanent operations is notable. Fuel cells convert natural gas to electricity through a chemical process rather than combustion, resulting in significantly lower emissions of criteria pollutants like NOx and particulate matter.
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