New Jersey Fines DataOne $1.1 Million for Operating Unpermitted Gas Generators

New Jersey has ordered DataOne, the operator of one of the largest data centers planned on the East Coast, to pay a $1.1 million fine for secretly installing and operating gas generators in violation of the state’s Clean Air Act.

DataOne operated 45 unpermitted gas generators

The New Jersey Department of Environmental Protection (DEP) announced the enforcement action after an investigation. In August, The Guardian and Floodlight News shared thermal drone footage showing 45 of DataOne’s 62 gas generators in operation.

The generators were operating at a combined capacity of 1,982 kilowatts—more than 50 times the state’s limit. None had the permits required for generators with a capacity of 37 kilowatts or more.

DEP officials said the state regulates gas generators because they emit “carbon dioxide, nitrogen oxides, carbon monoxide, and other combustion-related pollutants.” These pollutants can worsen asthma, cause heart attacks, and contribute to premature death.

Largest data center enforcement action in New Jersey

DEP Secretary Ed Potosnak called the enforcement action “the largest ever against a data center in New Jersey.” He added that “no one can build or operate a data center in this state with impunity.”

However, the penalty does not immediately address residents’ concerns about emissions from the facility. DataOne has 45 days to apply for a permit or shut down its operations, but it can continue operating the gas engines while seeking permits.

Nicole Gardner, co-chair of local environmental nonprofit Sustain SJ, told Ars that the group considers the response insufficient.

“We believe it is insufficient both financially and in terms of enforcement. We need to suspend operations at the DataOne site for 45 days until the appropriate permits are issued,” Gardner said.

DataOne disputes the fine and plans to phase out the generators

In a statement to The New York Times, DataOne appeared unfazed by the fine.

A company spokesperson said DataOne “intends to apply for an air permit for temporary generators,” but added that the company “does not agree” with the fine.

The company also said the gas generators will eventually be phased out as data centers “move to low-emission, quiet fuel cells.”

New Jersey’s Department of Environmental Protection announcement and the investigation by Floodlight News provide additional details about the generators and the state’s enforcement action.