New Jersey fines data center $1 million after drone discovery

A large data center in the city of Vineland, New Jersey, has been fined more than $1 million after authorities discovered 62 illegally installed gas generators on the site. That is according to several US media outlets, including Engineering News-Record and WHYY.

The data center is being built by the company DataOne and operated by Nebius, which has a major deal with Microsoft to supply computing power for the company's AI products, including Copilot. The generators were meant to temporarily power the facility while it waits for permanent fuel cells from Bloom Energy.

The case came to light when the news outlet Floodlight flew a thermal drone over the area and captured images of generators in operation. The footage showed that at least 45 of the 62 generators were running. New Jersey's environmental agency (NJDEP) visited the facility itself on July 29 and found all 62 generators, which had not been there during an earlier visit in December 2025.

According to the authorities, DataOne lacked the necessary permits to install and run the generators, each of which produces nearly 2,000 kilowatts of power, far above the 37-kilowatt threshold at which a permit is required under the state's Air Pollution Control Act.

NJDEP Commissioner Ed Potosnak calls the fine the largest the state has ever issued to a data center, and possibly one of the largest in the entire US.

DataOne calls the generators "temporary" and says the company will now apply for the missing permits. The company has 45 days to submit the applications; otherwise the generators must be shut down.

The case is yet another example of how the rapidly growing construction of data centers for artificial intelligence is putting enormous pressure on the power supply in many parts of the US, leading companies to resort to temporary solutions such as diesel generators while permanent power is established.