In what surely will be noted in the data center ecosystem, the N.J. Department of Environmental Protection fined the DataOne data center in Vineland $1.07 million for installing and operating 62 large natural-gas generators without the required state permits, the agency announced Tuesday.
It’s the largest enforcement action ever taken against a data center in New Jersey.
According to the DEP, inspectors found the 62 generators, each with a capacity of 1,982 kilowatts, during a July 29 site visit. The generators weren’t there during the department’s previous inspection in December 2025. State law requires a preconstruction permit and operating certificate for any generator rated at 37 kilowatts or higher — a threshold DataOne’s units cleared by a wide margin. The DEP’s order cites the company for violating the Air Pollution Control Act and directs DataOne to either obtain the required permits immediately or shut the generators down.
“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,” DEP Commissioner Ed Potosnak said.
DataOne, through a spokesperson, said the company is in a transition to provide what is wanted.
“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,” the spokesperson said. “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.”
DataOne owns the facility, and its name will be the one on the building.
Nebius, the AI cloud company that will operate the inside of the building and for which the facility is specifically designed. Its vice president of U.S. Public Affairs, John Sutter, spoke extensively with BINJE in early August.
Data Centers certainly are a concern around the region and the country. Senator John Burzichelli, Assemblyman Dave Bailey and Assemblywoman Heather Simmons spoke on it recently.
Gov. Mikie Sherrill, who has made transparency around data center development a key part of her energy actions, weighed in.
“I said from the beginning that we are going to hold data centers accountable, period,” she said. “That is exactly why I announced the most comprehensive data center plan in the nation and moved quickly to put those guardrails in place.
“We are putting power in the hands of the people and ensuring this industry works for us, on our terms — not theirs.”
The fine lands amid a broader push by the Sherrill administration to regulate the state’s fast-growing data center industry, built around four priorities:
- requiring data centers to bring their own clean energy to the grid rather than shifting costs to ratepayers,
- mandating transparency on energy and water use,
- setting statewide standards for community benefits agreements,
- requiring prevailing wages and local trades on construction jobs.
Sherrill has already signed two pieces of legislation toward that end.
A law signed in July requires data centers to supply their own clean energy and creates a separate utility rate class to shield other ratepayers from their energy demand. A second law, signed Aug. 27, requires data center operators to file semiannual reports with the state Board of Public Utilities detailing their energy and water use — including total consumption, cooling and IT-equipment use, peak daily water draw, water sources, and backup power supplies.
Sherrill also announced statewide guidance that day to help municipalities negotiate stronger community benefits agreements, with technical assistance available through the N.J. Economic Development Authority, DEP and BPU.
“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,” Sherrill said. “New Jerseyans have my firm commitment, and today’s action is an example.”
