Microsoft-backed AI data center accused of operating illegally
What's the story
DataOne, the largest planned artificial intelligence (AI) data center in New Jersey, has been accused of operating without the necessary federal permits. The facility, which is located about 64km from Philadelphia in Vineland, was found to be running dozens of gas-powered generators without a permit, according to The Guardian. Thermal drone footage showed that at least 45 out of the site's total 62 generators were operational at the same time.
Partnership details
DataOne provides computing power to Microsoft
DataOne provides AI computing power to tech giant Microsoft as part of a $17 billion deal with Dutch AI infrastructure company Nebius.
The facility has been controversial since its construction began in 2025, with noise complaints, zoning debates, and backlash from residents.
It is located just a mile away from two schools.
Facility scale
Data center set to be much larger than standard facilities
The DataOne site is set to become a massive 2.6 million-square-foot facility, much larger than the standard 100,000-square-foot data centers that power cloud services.
Each of the gas-powered generators at the site is as big as a tractor-trailer or semi-truck and emits large amounts of air pollution linked to health conditions like asthma and heart attacks.
The noise from these machines has also led to an ongoing lawsuit by residents.
Regulatory perspective
Company should halt operations, pay fine for illegal emissions: Expert
Former Environmental Protection Agency (EPA) chief Bruce Buckheit said that any site using such generators needs "a final permit before bringing" them online.
He believes that DataOne's actions "violate federal law" and the company should immediately halt operations and pay a fine for its illegal emissions.
A spokesperson from the New Jersey Department of Environmental Protection confirmed that no permits have been issued or applications under review for power generators at the facility.
Company stance
DataOne has been repeatedly cited by the city of Vineland
DataOne has not responded to questions about the unpermitted generators but said it "remains committed to meeting all applicable and environmental and permitting requirements."
However, the company has been repeatedly cited by the city of Vineland, which has issued multiple stop work orders.
Neither Nebius nor Microsoft have responded to these allegations.