What New Jersey found in Vineland
New Jersey’s Department of Environmental Protection fined DataOne $1.07 million on September 22, 2026. DataOne is building a large AI data center in Vineland. State inspectors visited the site on July 29 and found 62 natural gas generators installed and running without the air approvals the state requires. NJBIZ
Each engine is rated at 1,982 kilowatts. A kilowatt measures how much electricity a machine can produce, and together the 62 engines add up to about 123 megawatts, a megawatt being a thousand kilowatts. The generators were not on the site when inspectors last visited in December 2025. NJBIZ They were behind the meter. That means they made power on site for the AI data center itself instead of the site drawing that power from the utility grid.
When a generator needs a permit before it runs
New Jersey’s air permit rule lists the kinds of equipment that need approval, and two entries catch generators. The first covers fuel burning equipment above a set heat input size, and it names emergency generators expressly. The second covers any engine that stays in place and makes electricity with a capacity of 37 kilowatts or more. N.J.A.C. 7:27-8.2 Each DataOne engine is more than 50 times that 37 kilowatt line. Ars Technica
Equipment on the list needs two separate approvals. A preconstruction permit is the state’s approval before a machine is built or installed. An operating certificate is the approval to actually run it. The rule bars installing without the first and bars running without the second. N.J.A.C. 7:27-8
The rule offers one narrow way to move early. A developer that has filed a complete application may build and set equipment in place while the agency reviews it, after giving seven days notice. It may not test or run that equipment until approval arrives. N.J.A.C. 7:27-8 So a site can get ready. It cannot switch on.
Why calling the engines temporary did not help
DataOne says the generators are temporary and that it disagrees with the state on that point. It also says it will apply for the air permits and move to fuel cells for its permanent power. NJ.com
The rules do exempt some short term equipment, but each exemption has a limit. Portable equipment used for construction, repair or maintenance is exempt only while it stays on site no longer than one year. Portable equipment used in an emergency is exempt for up to 90 consecutive days. N.J.A.C. 7:27-8.2 A construction generator used only until regular power lines reach the site also falls outside the engine category. N.J.A.C. 7:27-8 The state’s order found the Vineland engines needed both approvals anyway.
DataOne had tried the permit route once already. It applied for permits for about 30 generators, then withdrew that application in May after the agency found several deficiencies. Ars Technica
| Item | Before the order | Under the order |
|---|---|---|
| Air approvals for the 62 engines | None held | Must be obtained within 45 days or the engines stop |
| Penalty | None assessed | $1.07 million, with a possible added charge |
| Engine operation | Running without approval | May continue while permits are sought |
| Challenge | Nothing to challenge | Hearing request due within 20 days of receipt |
What the order costs and what DataOne can do now
New Jersey’s air penalty rules allow up to $10,000 for a first offense and $25,000 for a second. The cap rises to $50,000 for the third and each later offense. Every day a violation continues counts as a separate offense. N.J.A.C. 7:27A-3.1 That daily count is the real exposure for a developer that runs generators first. The state may also add a penalty equal to any money DataOne saved by not complying on time. ENR
The order gives DataOne 45 days from receipt to apply for and obtain the approvals. If it does not apply within that window, it must stop installing and running the engines. ENR The engines can keep running while DataOne seeks the permits. Ars Technica
DataOne has 20 days from receipt to ask for a hearing. Asking does not pause the order’s repair requirements. ENR Without a timely request, the penalty notice becomes a final order on the 21st day after receipt. N.J.A.C. 7:27A-3.3 If DataOne received the order on September 22, the hearing window closes October 12. The 45 day permit window would then close November 6.
Tomorrow’s topic
PJM’s annual review of AI data center large load adjustment requests.