New Jersey Fines Vineland Data Center $1.07M for Unpermitted Gas Generators

# What happened On July 29, New Jersey Department of Environmental Protection (DEP) inspectors observed 62 stationary reciprocating natural-gas generators at the DataOne data center in Vineland, Cumberland County. The DEP's Administrative Order and Notice of Civil Penalty Assessment finds those generators were installed and operated without the required preconstruction permits and valid operating certificates under the New Jersey Air Pollution Control Act.

The DEP assessed a $1.07 million civil penalty. The order directs DataOne to immediately apply for the required permits or to cease operating the generators.

# Why this matters

Commissioner Ed Potosnak described the penalty as the largest the department has taken against a data center in New Jersey and said it sends a clear message that facilities cannot be built or operated without following state environmental rules.

# How this fits into New Jersey policy on data centers Governor Mikie Sherrill's administration has prioritized tighter rules for data center development because of concerns about energy and water demand, community impacts, and costs to ratepayers. The administration has outlined a four-pillar plan that includes:

• Fair-share rules to ensure data centers bring new clean energy online and help fund needed grid infrastructure rather than shifting costs to residents and other ratepayers.
• Increased transparency by requiring reporting on energy and water use to give the public visibility into large facilities' demands.
• Statewide guidance and resources to help municipalities negotiate Community Benefits Agreements so local impacts like light, noise, and pollution are addressed alongside local investments.
• Provisions to drive good-paying jobs by requiring use of local trades and prevailing wages where applicable.

On August 27, Governor Sherrill signed legislation (S3379/A4096) that requires data center owners and operators to submit semiannual reports to the New Jersey Board of Public Utilities on energy and water use, including peak daily water use, energy used for cooling and IT equipment, and information on on-site and backup power supplies.

# Immediate obligations and next steps Order compels the facility to either obtain the required preconstruction permits and operating certificates or to stop running the generators. The agency's enforcement action follows a December 2025 site inspection that did not observe those generators, indicating they were installed between inspections.

The civil penalty is part of a broader enforcement and regulatory push: the state is combining penalties and new statutory requirements to tighten oversight of rapidly expanding AI and large-scale computing infrastructure.

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