New Jersey fines DataOne $1.07 million over 62 unpermitted gas generators

New Jersey has fined DataOne, a Microsoft partner that operates a data center serving Microsoft Copilot, $1.07 million over 62 natural gas generators installed without the required environmental permits, according to the state.

The New Jersey Department of Environmental Protection said the company had neither reconstruction permits to install the generators nor operating certificates to run them. A local farmer photographing a neighboring golf course noticed equipment on the data center campus, prompting an investigation. A thermal drone later observed 45 of the 62 generators operating.

Each generator is rated at 1,982 kilowatts, for a combined capacity of 123 megawatts. The state said generators with a capacity of 37 kilowatts or more require approval. DataOne has 45 days to obtain the permits, but may continue using the gas generators in the meantime.

DEP Commissioner Ed Potosnak called the fine the largest ever imposed against a data center in New Jersey and possibly one of the largest such actions in the nation. DataOne said it disagrees with the state's determination about temporary generators, but will apply for air permits and is discussing the findings and fuel cell transition timeline with the department.