Data Center Fined $1.1 Million for Unpermitted Gas Power Generators

The New Jersey Department of Environmental Protection (DEP) has announced it is fining DataOne data center $1.07 million for using gas-powered generators without approval.

The DEP sent an administrative notice to the data infrastructure company regarding its Vineland data center in Cumberland County for installing and running large natural-gas-powered generators without securing the necessary permits, the department said in a Sept. 22 statement.

The department added that generators not observed during a December inspection were found on the premises during a July 29 inspection.

The Vineland data center is expected to be fully operational by next year.

According to the notice, the generators in question had a maximum rated power output capacity of 37 kilowatts or higher, and required certification.

Natural gas generators emit carbon dioxide, nitrogen oxides, carbon monoxide, and other combustion-related pollutants. DEP determined that DataOne violated the Air Pollution Control Act by installing and operating 62 1,982-kilowatt generators without securing a preconstruction permit or an operating certificate.

The company has been asked to submit the required permit and certificate applications within 45 days of receiving the notice. If the required applications are not submitted within 45 days, the company must cease operating the generators, the notice said.

“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.

The Epoch Times reached out to DataOne for comment and did not receive a response by the time of publication.

According to the DataOne website, the Vineland site will receive 49 megawatts from the power grid, which will serve as a permanent, consistent feed to the facility.

Data halls and other mechanical loads will be powered by on-site fuel cells. The grid will be used in these instances as backup for critical networks, according to the company.

DataOne said the project has been designed to ensure that grid reliability continues for the community. As such, the company does not expect a higher risk of blackouts or other impacts.

“Additionally, DataOne’s use of on-site power generation through fuel cells reduces its reliance on the grid, further minimizing any potential impact on local power supply,” according to DataOne.

Data centers have triggered investigations and actions in other states. Texas Attorney General Ken Paxton announced an investigation into data center developments over water usage in the state.

Paxton said in a Sept. 24 statement that his office was investigating hundreds of data centers to ensure they are “transparent about their water usage and fully compliant with the law.”

In California, Gov. Gavin Newsom signed seven bills this week to regulate data centers, including measures requiring disclosures on water and electricity use.

And in July, New York Gov. Kathy Hochul signed an executive order implementing a statewide moratorium on large data centers, making New York the first U.S. state to suspend construction of these big facilities. The moratorium is applicable to data centers that use 50 megawatts or more of energy.