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New Jersey hits Microsoft-linked AI data center with record fine for 62 unpermitted power generators, issues 45-day shutdown deadline — site tied to $33 billion deal also built illegal 1.5M-gallon fuel tank
The DataOne data center in Vineland, New Jersey, has just been hit with a record $1.07 million fine for operating unpermitted portable generators on the construction site. According to the New York Times, state inspectors spotted 62 of these units powering the facility back in late July.
Residents had already complained about it at a February town hall meeting. Inspectors said that there were no generators on site when they first visited in December last year. However, some residents said that “some type of unit” was spotted by satellite imagery back in February, leading to their complaint at the community assembly.
Residents of Vineland have already made multiple complaints about the development. Some of the issues t include the unpermitted construction of a 1.5-million-gallon LNG tank and unacceptable noise levels, especially at night, that affected homes within a half-mile radius of the construction site. They also said that there was little to no public consultation on the project before it went into full swing, with the people only finding out that a data center was being constructed in their neighborhood after Microsoft announced a $33 billion deal with Nebius, which in turn contracted DataOne to supply the compute they need.
Despite a record fine, some residents feel that the punishment isn’t enough. “It’s a ‘don’t ask for permission, just ask for forgiveness later’ kind of deal,” longtime Vineland resident Steve Brown told the Times. He also added, “It’s still kind of a drop in the bucket for a company that has several billion dollars of capital.” Long-time community member Tiffany Leone-Vespa also added, “What’s $1.07 million? They should have done it for each generator they were running illegally. They’re billionaires. It’s like pocket change.”
On the other hand, DataOne disagreed with the fine. A company spokesperson said that “We will apply for the air permits for the temporary generators,” and also added that it’s transitioning from the polluting and noisy portable turbines to more modern fuel cells. New Jersey ordered it to comply with the permitting requirements and to stop using the generators if they’re not granted within 45 days.
This is a similar situation that the citizens of Memphis and Southaven faced when SpaceXAI deployed 69 unpermitted generators to provide power to its Colossus 2 data center. It has become the subject of a lawsuit, especially as the community raised concerns that they were spewing thousands of tons of pollutants in the primarily black neighborhood. However, the Department of Justice stepped in and asked the court to dismiss the case because the site “supports mission-critical operations.” Elon Musk’s company eventually agreed to remove all unpermitted turbines, but said that the process will take over a year as replacement 1.2-gigawatt plants gradually come online.
Jowi Morales is a tech enthusiast with years of experience working in the industry. He’s been writing with several tech publications since 2021, where he’s been interested in tech hardware and consumer electronics.
“We will apply for the air permits for the temporary generators,”
Seriously??? You need the permits first! This sort of "Oh, well, we shouldn't get penalized for cheating, and fine, we'll apply for your little permits" attitude is absolutely unacceptable.
They didn't accidentally do something improper, this was by intent. Frankly, I'd be perfectly fine with the state seizing the property and all assets, and then penalties, including hefty costs to mitigate/compensate for the added pollution.
Am I taking this personally? Yeah, I am. It's not my town, but I do live in NJ, and we should absolutely make it clear that we won't do a mere slap on the wrist for this.
Wow, a ONE million fine! This ludicrous fine essentially encourages this criminal behavior!! It's as as good as a license to do more of the same and pay almost nothing!
Unless they fine them within an inch of bankruptcy, they will pay the minuscule fine, laugh their posteriors off and go back to breaking the law.
If I build a deck without a permit then my county will both fine me and make me tear it down to start over. The fine is big enough to equal the amount I spend on food in a month -- in other words, an impactful amount I'm going to notice. How come Microsoft just gets fined for an amount that equals a rounding error to them and doesn't have to remove anything? We give corporations way too much leeway.
45-days to continue operating unpermitted? That should only be allowed if they are being fined per diem. This was definitely the light slap on the wrist and saying "naughty, naughty." Not surprising though as we already know how established corporate welfare is at this point and that the same rules don't apply to everyone equally in the U.S.
So if I have no income, then my fine should be zero?
Yes, I'm trying logic on ranting peeps. Hahah.
It's always amusing when someone tries to be high and mighty but then misses what was being said entirely. They're clearly saying that the fines against the data center aren't high enough not complaining about what the fines would be in the hypothetical.
