The state of New Jersey has imposed a record fine of $1.07 million on a data center project linked to Microsoft. The facility, operated by DataOne, was found to be using 62 power generators without the necessary permits. Authorities have issued a 45-day deadline for the company to secure the required air permits or cease the operation of these generators.
Local residents in Vineland have raised multiple complaints regarding the site, citing the unauthorized construction of a 1.5-million-gallon LNG tank and excessive noise levels affecting homes within a half-mile radius. Community members expressed frustration over the lack of public consultation, noting that the project's scope only became clear following a $33 billion deal between Microsoft and Nebius.
DataOne stated that it intends to apply for the necessary air permits and is planning a transition from portable turbines to fuel cells. The company's actions mirror a recent situation in Memphis and Southaven, where SpaceXAI deployed 69 unpermitted generators for its Colossus 2 data center. In that case, the Department of Justice intervened, and the company agreed to phase out the turbines over a year.
Residents remain critical of the penalty, arguing that the fine is insufficient given the scale of the companies involved. While DataOne disputes the fine, it must now navigate the regulatory requirements set by New Jersey officials. Meanwhile, the broader industry trend of deploying temporary power solutions for data centers continues to face significant scrutiny from local communities and environmental regulators.
