Microsoft-backed AI data center has been accused of violating federal law

It's allegedly been running dozens of gigantic generators without a permit.

By Lawrence Bonk
A data center being built. Gerville/Getty Images

The largest planned AI data center in New Jersey has been accused of violating federal law after an investigation found the site running dozens of gas-powered generators without a permit, according to Floodlight and The Guardian. Thermal drone footage showed the partly-finished DataOne facility was operating at least 45 of the site's 62 generators simultaneously. The facility allegedly doesn't have permits for any of them.

DataOne is located around 40 miles outside of Philadelphia in Vineland, New Jersey. It provides AI computing power to Microsoft as part of a $17 billion deal with Dutch AI infrastructure giant Nebius. This data center has been controversial since breaking ground in 2025. There have been persistent noise complaints, contentious zoning debates and major blowback from residents. It's located just a mile from two schools.

In the age of AI, it's worth discussing the size of all of this stuff. The DataOne site will eventually become a 2.6 million-square-foot behemoth. A standard data center, of the type that powers cloud services, typically comes in at around 100,000 square feet. That's an exponential size difference.

The generators are also absolutely massive. Each one is the size of a tractor-trailer or semi-truck. These gigantic machines are gas-powered and emit boatloads of air pollution that have been linked to health conditions like asthma and heart attacks. They are also really, really loud. The noise complaints have led to a lawsuit by residents, which is ongoing.

So any site using this type of generator requires "a final permit before bringing" them online "and certainly before firing them up," according to former EPA chief Bruce Buckheit. The thermal drone footage suggests that many are operational, all without permits. Buckheit believes that DataOne's actions "violate federal law" and that the company should immediately cease operations and pay a fine for "their illegal emissions."

The facility's lack of proper operational permits has been confirmed by a spokesperson with the New Jersey Department of Environmental Protection. They said that the agency "has issued no permits, nor are any permit applications under review for power generators at the DataOne facility in Vineland." However, the spokesperson also said the agency has to make "a full compliance determination."

DataOne hasn't responded to pointed questions regarding the unpermitted generators but said it "remains committed to meeting all applicable and environmental and permitting requirements." That thermal drone footage seems to suggest otherwise. Also, the company has been repeatedly dinged by the city of Vineland, which has issued multiple stop work orders. Nebius and Microsoft haven't issued responses to the allegations.

"It seems that this industry, in particular, values speed to market more than almost anything else," Buckheit noted. He went on to say that the people behind DataOne "seem to believe that it's better to ask for forgiveness than for permission." That does seem to be the underlying credo behind most modern AI companies.

Recommended