New Jersey's Department of Environmental Protection fined DataOne, an AI data center operator in Vineland, $1.07 million after finding the facility installed and operated 62 natural gas generators without required air permits; the enforcement action was announced September 22. DataOne disputed the agency's determination regarding the temporary generators but said it would apply for air permits and engage with regulators, according to the New Jersey Monitor. Forrester senior analyst Abhijit Sunil told Data Center Knowledge that AI data centers are increasingly functioning as power plants, and that infrastructure can now be deployed faster than permitting processes were designed to oversee. IDC senior research manager Luis Fernandes noted that a recent IDC worldwide operator survey found waste heat reuse ranked last among sustainability priorities, with reducing water usage third from the bottom.
The $1.07 million penalty against DataOne is a concrete enforcement example of the compliance risk operators face when on-site generation is deployed without air permits, a problem that scales as more facilities bypass constrained grids using dozens of generators. The case establishes that behind-the-meter power does not exempt operators from environmental permitting requirements, setting a precedent that regulators in other states could follow as on-site generation expands across the industry.
Data Center Knowledge's coverage of a New Jersey penalty linked to on-site power failures at AI data centers highlights a concrete regulatory and operational risk event in a named US state, making it highly relevant to the Power & Energy category.