NJ fines data center $1 million for illegally powering facility with gas generators

NJ fines data center $1 million for illegally powering facility with gas generators

News ClipGothamist·Vineland, Cumberland County, NJ·9/22/2026

The New Jersey Department of Environmental Protection has fined DataONE, a data center operator in Vineland, over $1 million for illegally installing and operating 62 gas-powered generators without state permits. This penalty is the largest ever issued to a data center in New Jersey and comes amid growing concerns from residents and officials regarding the industry's environmental impact and energy consumption, which has been linked to rising electricity prices in the state. Local residents have also voiced concerns about transparency and a persistent hum from the facility.

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Microsoft
Gov: New Jersey Department of Environmental Protection, New Jersey State Government, Vineland City Government

The New Jersey Department of Environmental Protection (DEP) has levied a fine of over $1 million against DataONE, an operator of a large data center in Vineland, New Jersey. The penalty was issued after a July 29 site inspection revealed that the company had installed and operated 62 large gas-powered generators without the required state permits, a violation not observed during a December 2025 inspection. DEP Commissioner Ed Potosnak stated that this is the largest fine of its kind in New Jersey, sending a clear message against unauthorized data center operations.

The data center, a $17 billion project backed by Microsoft, began construction in early 2025 and is expected to open its first phase later this year. It is designed to consume up to 350 megawatts of power, significantly more than Vineland's current electricity usage, fueling local residents' concerns about rising utility bills and environmental impact. Activist groups, including the Climate Revolution Action Network and Sustain South Jersey, have actively opposed the project, with residents like Matt Williams calling the fine