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New Jersey AI datacenter accused of violating federal law over unpermitted generators

Created at 27 Aug · 3:10 PM1 source↑ Market-relevant
IN SHORT

The DataOne AI datacenter in Vineland, New Jersey, is accused of violating federal law for operating dozens of unpermitted gas-powered generators. Thermal drone footage revealed at least 45 generators running at the partly completed facility, which is slated to provide AI computing power to Microsoft.

Key Numbers

45unpermitted generators operating at DataOne facility
62total generators at the site
17billion dollar deal with Nebius for AI computing power
300MW capacity of planned Bloom fuel cells
2billion pounds of CO2 potentially emitted annually by fuel cells

Who's Involved

DataOne
AI datacenter accused of violating federal law
Floodlight
Non-profit newsroom that conducted the investigation
Bruce Buckheit
Former EPA air enforcement chief
New Jersey Department of Environmental Protection (NJDEP)
State agency that has not issued permits for the generators
Microsoft
Company slated to receive AI computing power from the facility
Nebius
Dutch AI infrastructure giant involved in a $17bn deal
Andrew and Stevi Groetsch
Local residents complaining about noise pollution

↳ Why This Matters

The operation of unpermitted generators at a major AI datacenter raises significant environmental and legal concerns, potentially impacting public health due to air pollution and setting a precedent for regulatory compliance in the rapidly expanding AI infrastructure sector.

Key facts

  • The DataOne AI datacenter in Vineland, New Jersey, is accused of violating federal law by operating unpermitted gas-powered generators.
  • Thermal drone footage revealed at least 45 generators running at the partly completed facility.
  • Former EPA air enforcement chief Bruce Buckheit believes the company should stop operations and pay a fine for illegal emissions.
  • The New Jersey Department of Environmental Protection has not issued any permits for the generators.
  • Local residents have complained about noise pollution and filed a class-action lawsuit.
  • The datacenter is intended to provide AI computing power to Microsoft.

The DataOne AI datacenter, one of the largest planned on the East Coast, is facing accusations of violating federal law due to the operation of dozens of unpermitted gas-powered generators. Thermal drone footage captured by the non-profit newsroom Floodlight revealed that at least 45 of the facility's 62 generators were running at the partly completed site in Vineland, New Jersey.

Former EPA air enforcement chief Bruce Buckheit told Floodlight that DataOne is required to have final permits before operating generators and that their current activities "violate federal law." He believes the company should cease operations and pay a fine for "illegal emissions."

A spokesperson for the New Jersey Department of Environmental Protection (NJDEP) confirmed that the agency has issued no permits for the generators and has no permit applications under review. The spokesperson noted that the agency observed the generators during a site inspection on July 29 but has yet to make a full compliance determination.

DataOne, which is slated to provide AI computing power to Microsoft as part of a $17 billion deal with Dutch AI infrastructure giant Nebius, did not respond to questions about the unpermitted generators but stated its commitment to meeting all environmental and permitting requirements. Microsoft and Nebius declined to comment.

The facility has been a source of controversy since construction began in 2025, with local residents raising concerns about noise pollution, unpermitted construction, and a contentious zoning process. The generators, described as tractor-trailer-size, are located about a mile from two schools, and residents have complained of a pervasive humming noise. A class-action lawsuit has been filed over noise pollution, with many suspecting the generators are the cause.

DataOne originally planned to use Bergen gas-burning engines, but the NJDEP found deficiencies in its air permit application. The company withdrew that application and now plans to use Bloom fuel cells, which use a combustion-free electrochemical process. However, until the fuel cells are operational, the facility is relying on the unpermitted generators. The NJDEP has previously cited DataOne for violating noise ordinances, and the city of Vineland issued two stop-work orders earlier this month.

Frequently asked questions

DataOne is accused of violating federal law by operating dozens of unpermitted gas-powered generators at its AI datacenter in Vineland, New Jersey.

The unpermitted generators were revealed through a visual investigation and thermal drone footage captured by the non-profit newsroom Floodlight.

Former EPA air enforcement chief Bruce Buckheit believes the company should immediately stop operating the generators and pay a fine for illegal emissions. The NJDEP may also pursue administrative enforcement action.

A spokesperson for the New Jersey Department of Environmental Protection confirmed that the agency has issued no permits for the generators, nor are any permit applications under review.

What Happens Next

01The NJDEP is expected to make a full compliance determination regarding the generators.
02DataOne may face administrative enforcement action or fines for illegal emissions.
03The class-action lawsuit over noise pollution may proceed.

How It Developed

A visual investigation found the DataOne AI datacenter in Vineland, New Jersey, operating dozens of unpermitted gas-powered generators.
Thermal drone footage captured by Floodlight showed the facility operating at least 45 of its 62 generators.
Former EPA air enforcement chief Bruce Buckheit stated the activities violate federal law and called for an immediate stop to operations and fines.
A New Jersey Department of Environmental Protection spokesperson confirmed no permits have been issued or are under review for the generators.
The NJDEP noticed the generators during a site inspection on July 29 and has yet to make a full compliance determination.
DataOne stated it remains committed to meeting all applicable environmental and permitting requirements.
The facility is relying on the unpermitted generators until planned Bloom fuel cells are operational.
Local residents have filed a class-action lawsuit over noise pollution, suspecting it is linked to the generators.

Sources

T1
One of east coast’s largest datacenters accused of ‘violating federal law’The Guardian

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