NJ Slaps $1M Fine On Massive South Jersey Data Center

VINELAND, NJ — The massive data center in Vineland has been fined more than $1 million by the New Jersey Department of Environmental Protection over issues that go to the heart of concerns raised by data center foes fighting for bans across the state.

The DataOne data center was fined for installing and operating 62 large natural-gas powered generators without proper permits, violating the New Jersey Air Pollution Control Act, the NJDEP said.

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The fine comes after a July 29 inspection of the facility that found it was operating 1,982-kilowatt (kw) stationary reciprocating generators (also known as engines) without getting a preconstruction permit and appropriate operating certificate.

The generators were not present when the NJDEP inspected the site in December 2025, the Administrative Order and Notice of Civil Penalty Assessment said.

Natural gas generators emit carbon dioxide, nitrogen oxides, carbon monoxide, and other pollutants, and the NJDEP requires permits for any generator that produces 37 kw of power or more, which are used for industrial applications. By comparison, portable home generators produce between 5 and 15 kw of power.

In addition, DataOne has been ordered to immediately apply for and secure the mandatory permits or stop operating, officials said.

The $1,072,000 fine is the largest enforcement of any kind taken on such a facility in the state's history, NJDEP Commissioner Ed Potosnak said.

The Vineland data center, which helps supply power for the growing demand for artificial intelligence, has been the primary example cited by data center opponents around the state as they have pushed — in many cases successfully — for towns to ban them.

More than 30 towns had banned data centers outright as of mid-August, according to Climate Revolution Action Network, which has been advocating for the bans. Among them are Jersey City, Howell, Bayonne, Warren and Madison. Other towns have followed suit, including August, as did East Brunswick and Stafford Township. Brick Township introduced an ordinance to ban the centers on Sept. 8.

Other towns have been been more cautious in their approach. Bridgewater approved regulations on the centers at its Sept. 8 council meeting. The township's zoning does not include data centers as a permitted use in any part of the town, but officials have not outright banned them over concerns about potential lawsuits.

In Manchester Township, where thecouncil repealed an ordinance that would have allowed data centers at a specific site that is subject of a redevelopment plan, the Vineland site was referenced by a resident who urged the council to institute an outright ban.

The woman had been visiting family in Vineland and said she could feel the vibrations from the center at her family member's home more than a mile away.

At least one town is facing a lawsuit for banning data centers. Montgomery's ban is being challenged by E. Kahn Development Corp., which had been at odds with the town over development of a former commercial site.

Data centers have existed since the 1950s and have "generally been harmless" – but AI is changing that, Climate Revolution Action Network says..

"AI data centers are raising our bills, polluting our environment, and disturbing our communities," the group claims. "Meanwhile, the billionaires and private equity firms behind AI are using it to undermine our institutions at every corner."

Supporters of data centers say they're needed to keep the state competitive in the rapidly growing artificial intelligence industry.

Opponents have been pushing for a moratorium at the state level, but so far Gov. Mikie Sherrill's administration has not agreed to halt them, even temporarily.

Instead, Sherrill signed legislation that required data centers to provide their own clean energy and created a different rate class for these areas in order to protect homeowners from having to pay for the costs of the added power grid demands.

As of Aug. 27, data center owners and operators in the state must also give regular reports to the New Jersey Board of Public Utilities that show water and energy use.

The Vineland enforcement action "sends a clear message that these facilities will not be constructed or operated with impunity in this state." Potosnak said. "The Sherrill administration demands accountability and corporate responsibility in the construction and operation of data centers and is committed to putting in place legal and regulatory guardrails that protect ratepayers, communities and the environment."

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