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New Jersey issued a $1 million fine to artificial intelligence company Data One this week after state regulators found that the company's data center in Vineland is using unapproved gas-powered generators.
Officials from the Department of Environmental Protection said they visited the data center July 29 and found 62 1,982-kilowatt generators onsite that were not there during the last inspection in December. State law requires buildings with generators of 37 kilowatts or higher to obtain a permit and license to operate them. Data One's move violated the New Jersey's Air Pollution Control Act, regulators said.
The $1 million levy marked the largest fine the Garden State has ever assessed on a data center, Gov. Mikie Sherrill said. The fine lands as cities and towns across the state — including Asbury Park, Red Bank and Sayreville — have placed moratoriums on data center construction. New Jersey doesn't have a statewide ban on data centers, but a bill making its way through the Legislature would impose a six-month freeze.
"I said from the beginning that we are going to hold data centers accountable, period," the governor said in a statement after announcing the fine Tuesday. "Data centers will pay their fair share for energy, be accountable for their water and energy use, protect our environment, create good-paying union jobs, and invest in communities."
In a statement, a Data One spokesperson said the company installed the generators temporarily because the data center is switching to "low-emission, quiet fuel cells as part of the site's permanent power solution."
"While we disagree with the temporary generator determination, we will apply for the air permits for the temporary generators and are in communication with the Department of Environmental Protection regarding its findings and the fuel cell transition timeline," the spokesperson said.