NJ fines Microsoft-backed data center $1.07 million for operating 62 methane gas-fueled generators without permits
VINELAND, N.J. — The New Jersey Department of Environmental Protection (DEP) has fined the Microsoft-backed DataOne data center in the city $1.07 million for violating the Air Pollution Control Act. DEP said in a statement that DataOne installed and operated 62 large methane gas-powered generators without the necessary permits.
“This enforcement action — by far the largest ever taken against a data center in New Jersey and possibly one of the largest such actions in the nation — sends a clear message that these facilities will not be constructed or operated with impunity in this state,” DEP Commissioner Ed Potosnak said in the statement. “[Gov. Mikie Sherrill’s] 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.”
Natural gas generators emit carbon-dioxide, nitrogen oxides, carbon monoxide and other combustion-related pollutants, DEP wrote. The Administrative Orders and Notice of Civil Penalty Assessments (AONOCPA) cites DataOne with violating the Air Pollution Control Act by installing and operating 62 1,982-kilowatt stationary reciprocating generators without first obtaining a preconstruction permit and valid operating certificate. The AONOCAPA orders DataOne to immediately apply for and obtain the required permits or cease operations.
“DataOne being fined for their unpermitted generator use is unsurprising and long overdue,” said Matt Williams, chair of Sustain SJ, a local nonprofit advocating for environmental stewardship and responsible development. “For a whole year the experience of our community living near this project has been a nightmare, and the track record of ‘act first and ask for forgiveness later’ is proven once again.”
The use of the gas generators along with other issues are directly in violation of a series of Microsoft’s own public commitments to responsible data center development. In January, Microsoft released its Community First AI Infrastructure Plan, naming “a commitment to do this work differently than some others and to do it responsibly … to be a good neighbor in the communities where we build, own, and operate our datacenters.”
The company’s Data Center Community Pledge released in June of 2024 included three key commitment areas to contribute to a sustainable future by sourcing clean energy and replenishing water, and “operating responsibly as a good neighbor” by working with and supporting the communities where it planned to build.
Community members are demanding an immediate cessation of operations and construction at the facility, and awaiting a response from Microsoft to local residents’ concerns.
The fossil fuel-powered data center buildout also comes with its own set of negative externalities, including serious consequences for people living nearby. A Piedmont Environmental Council study published earlier this spring found that on-site power derived from methane gas and diesel generators for a single data center in Virginia could lead to $53-99 million in health-related costs.
Communities living near fossil fuel power, off-grid or otherwise, face increased risk of cancers, heart disease, stroke, respiratory illnesses, and other adverse health outcomes. A 2021 Harvard University study found that 1 in 5 deaths globally can be linked to air pollution caused by the burning of fossil fuels, reinforcing the industry’s responsibility for rapid climate action.