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Microsoft-backed AI data center accused of federal violations

Engadget •
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The largest planned AI data center in New Jersey has been accused of violating federal law after an investigation found the site running dozens of gas-powered generators without a permit, according to Floodlight and The Guardian. Thermal drone footage showed the partly-finished Data One facility was operating at least 45 of the site's 62 generators simultaneously, allegedly without permits for any of them.

Data One is located around 40 miles outside of Philadelphia in Vineland, New Jersey, and provides AI computing power to Microsoft as part of a $17 billion deal with Dutch AI infrastructure giant Nebius. The facility has drawn noise complaints, zoning disputes and resident lawsuits since breaking ground in 2025, and sits just a mile from two schools.

Former EPA chief Bruce Buckheit said any site using this type of generator requires a final permit before bringing them online. He believes Data One's actions "violate federal law" and that the company should immediately cease operations and pay a fine. A New Jersey Department of Environmental Protection spokesperson confirmed no permits have been issued.

Data One said it "remains committed to meeting all applicable environmental and permitting requirements," while the city of Vineland has issued multiple stop work orders. Nebius and Microsoft haven't responded. Buckheit noted the AI industry "values speed to market more than almost anything else."