A sprawling AI data center about 40 miles outside Philadelphia is facing accusations of violating federal law after an investigation found dozens of massive, gas-powered generators running without permits at the site in Vineland, New Jersey.
The DataOne facility, which provides AI computing power to Microsoft as part of a $17 billion deal with Dutch infrastructure company Nebius, was caught on thermal drone footage operating at least 45 of its 62 generators simultaneously. The facility does not hold permits for any of them, according to a joint investigation by Floodlight and The Guardian published Thursday.
Tractor-trailer-sized generators a mile from two schools
Each generator at the site is roughly the size of a tractor-trailer. They burn gas and emit air pollution linked to health conditions including asthma and heart attacks. The facility sits just a mile from two schools.
The DataOne site, which broke ground in 2025, is planned to become a 2.6 million-square-foot complex. A standard data center that powers cloud services typically runs about 100,000 square feet.
Former EPA chief Bruce Buckheit said any site using this type of generator requires a final permit before bringing them online. He said DataOne’s actions “violate federal law” and that the company should immediately cease operations and pay a fine for “their illegal emissions.”
“It seems that this industry, in particular, values speed to market more than almost anything else,” Buckheit said. He added that the people behind DataOne “seem to believe that it’s better to ask for forgiveness than for permission.”
New Jersey confirms: no permits issued or under review
A spokesperson for the New Jersey Department of Environmental Protection confirmed the facility lacks proper operational permits. The agency “has issued no permits, nor are any permit applications under review for power generators at the DataOne facility in Vineland,” the spokesperson said, adding that the agency still needs to make “a full compliance determination.”
The city of Vineland has issued multiple stop work orders against the project. Residents have also filed a lawsuit over persistent noise complaints, and that case is ongoing.
DataOne, Microsoft and Nebius stay quiet on specifics
DataOne has not responded to pointed questions about the unpermitted generators but said it “remains committed to meeting all applicable and environmental and permitting requirements.” Neither Microsoft nor Nebius has responded to the allegations.
For Northeast Philadelphia residents who commute into South Jersey or have family in the region, the controversy highlights a growing tension playing out across the East Coast: the AI industry’s appetite for enormous computing infrastructure is colliding with local environmental rules and the communities that live next door. The Vineland facility is the largest planned AI data center in New Jersey, and its legal troubles are far from resolved.