New Jersey Penalizes AI Datacenter Over Unpermitted Generators

New Jersey regulators have issued a record $1.07 million fine against a Microsoft-linked AI datacenter in Vineland for operating at least 45 gas-powered generators without a state permit. The penalty by the New Jersey Department of Environmental Protection follows an independent media investigation that revealed the unpermitted machines.

Investigation Findings

The facility, located about 40 miles outside Philadelphia, is designed to provide AI computing power to Microsoft through a partnership with Dutch infrastructure firm Nebius. State officials confirmed they did not see the tractor-trailer-sized generators during a December site inspection, but thermal drone footage captured 45 of the site's 62 generators running last month. The machines produce air pollution linked to health problems like asthma and heart attacks.

State Orders And Reactions

Under the state order, DataOne has 45 days to either apply for the necessary air permits or shut down operations, though regulators are permitting the facility to keep running the generators during this grace period. Former EPA air enforcement chief Bruce Buckheit noted that the company is likely relieved by the allowance to keep operating. Meanwhile, local environmental advocates argue the fine is too small to impact a major corporation and criticized the state for not forcing an immediate halt. DataOne stated it is transitioning to low-emission fuel cells for its permanent power needs and is in talks with the department regarding the timeline.