- New Jersey issues $1.07m fine for failure to obtain permits to run gas generators
- DataOne campus was observed using at least 45 of the generators without a permit
- DataOne "disagree[s]" but has 45 days to obtain the relevant permits
A data center slated to provide "AI infrastructure" to Microsoft later this year has been hit with a $1.07 million fine by the US state of New Jersey after allegedly installing no fewer than 62 natural gas generators on-site without obtaining the correct environmental permits.
The state found out about the generators after a local farmer photographing a neighboring golf course noticed equipment appearing on the campus. This led to an investigation by the nonprofit newsroom Floodlight, in partnership with the Guardian, and the deployment of a thermal drone — which reportedly observed 45 of the 62 generators in operation.
The fine was based on New Jersey's Air Pollution Control Act, which requires both preconstruction permits to install the generators and operating certificates to run them. Neither had been obtained across all 62 units, the department said in an announcement.
DataOne campus due to supply Microsoft in coming months
The DataOne facility has been built for the Dutch cloud AI company Nebius, which announced earlier this month that it would be using it to "deliver AI infrastructure to Microsoft," starting later this year.
DEP Commissioner Ed Potosnak described the fine as "by far the largest ever taken against a data center in New Jersey and possibly one of the largest such actions in the nation."
He continued: "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.”
With each generator rated at 1,982 kilowatts, they collectively have a 123-megawatt capacity. For reference, the state asserted that any individual generators with a 37kW or higher capacity requires approval.
The generators effectively provide the data center with a considerable amount of off-grid electricity supply, but while this may be good news to alleviate strains on local infrastructure and household energy prices, there are concerns over CO2, NO2 and CO emissions.
"While we disagree with the temporary generator determination, we will apply for the air permits for the temporary generators and are in communication with the Department of Environmental Protection regarding its findings and the fuel cell transition timeline," DataOne, said in a statement.
DataOne has been given 45 days to obtain the relevant permits, but in the interim, it can continue using the gas generators.
TechRadar Pro is awaiting a comment from Microsoft.
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