DataOne accused of federal law violation

The largest planned AI data center in New Jersey is being accused of violating federal law. A visual investigation by Floodlight found the partly completed DataOne facility in Vineland operating at least 45 of its 62 gas-powered generators without permits last week.

Former EPA air enforcement chief Bruce Buckheit told Floodlight the activities likely "violate federal law." He said DataOne should have a final permit before bringing generators onsite and firing them up. The company should stop operating them and pay a fine for illegal emissions, he argued.

A New Jersey Department of Environmental Protection spokesperson confirmed the agency has issued no permits for power generators at the Vineland site. The agency noticed the generators during a July 29 inspection but has yet to make a full compliance determination. Buckheit suggested administrative enforcement action might be coming soon.

Generator operation and local impact

Thermal drone footage captured last week showed the generators running. Earlier footage from a data intelligence company appeared to show 25 unpermitted generators operating in late June. Maintenance logs suggest the first generators were turned on in October.

Local residents have complained of a constant humming noise for months. Andrew and Stevi Groetsch, who live less than a mile away, say the noise wakes them at night and disturbs bedtime stories. They have complained since November and hope regulators will intervene. A lawsuit in New Jersey state court alleges noise pollution linked to the generators.

DataOne did not respond to questions about the unpermitted generators. The company said it remains committed to meeting all environmental and permitting requirements. Nebius, the Dutch AI infrastructure giant in a $17-billion deal with Microsoft for the site's computing power, did not comment. Microsoft also declined to comment.

The shift to on-site power

DataOne is the first data center in New Jersey seeking to build its own power plant. This controversial tactic was pioneered by Elon Musk's data centers in the South and has gone mainstream. Nationwide, nearly 60 data centers plan to build their own gas plants, according to research by Cleanview.

The "bring your own power" strategy has caused yearslong backlogs for gas turbines. Facilities are increasingly turning to less conventional sources like modified jet engines and portable generators.

DataOne originally sought a permit for more than 30 Bergen gas-burning engines, commonly used on cruise ships. NJDEP found deficiencies in that application, which DataOne withdrew in May. The company now plans to rely on an array of Bloom fuel cells capable of producing 300 megawatts.

Though powered by gas, fuel cells use a combustion-free electrochemical process. They result in far less health-harming air pollution than Bergen engines. However, a Bloom official testified that if completed, they could emit over 2 billion pounds of carbon dioxide yearly. Until the fuel cells are operational, the facility relies on the unpermitted generators.

A history of violations

If NJDEP acts on the generators, it won't be DataOne's first violation. A lawsuit alleges the Cumberland County Department of Public Health cited DataOne for violating nighttime noise ordinances in March. Earlier this month, the City of Vineland issued two stop work orders. One was for moving the Bloom fuel cells onsite without permission.

The tractor-trailer-size generators emit health-harming air pollution linked to asthma, heart attacks, and premature death. The site is located about 40 miles outside Philadelphia and roughly a mile from two schools.

Buckheit suspects the company values speed to market and won't stop until issued a stop work order. He said they seem to believe it's better to ask for forgiveness than permission. The Environmental Protection Agency told Floodlight that New Jersey's regulators are responsible for air permitting over DataOne.