Microsoft-backed AI data center has been accused of violating federal law

A Microsoft-backed AI data center in New Jersey is accused of violating federal law by operating dozens of massive diesel generators without the required permits, according to new drone footage and environmental regulators. The DataOne facility, located about 40 miles outside Philadelphia in Vineland, provides AI computing power to Microsoft under a $17 billion deal with Dutch infrastructure firm Nebius. Thermal drone footage captured more than 60 unpermitted generators, each the size of a tractor-trailer, running roughly a mile from two schools. The state’s environmental agency confirmed it has issued no permits for the generators and has no applications under review, though it said a full compliance determination is still pending.

The site has been a source of controversy since construction began in 2025, with ongoing noise complaints, zoning disputes, and resident backlash. The generators are gas-powered and emit air pollution linked to health conditions such as asthma and heart attacks, and their noise has already prompted a lawsuit from local residents that is still ongoing. Former EPA chief Bruce Buckheit said the lack of permits violates federal law, arguing that the company should immediately stop operations and pay a fine for its illegal emissions. DataOne has not directly answered questions about the unpermitted generators but stated it remains committed to meeting all applicable environmental and permitting requirements.

The scale of the operation is notable even by industry standards. The DataOne site is planned to span 2.6 million square feet, compared to a typical data center for cloud services at around 100,000 square feet. The generators themselves are enormous, each comparable in size to a semi-truck, and are designed to provide backup or supplemental power at a massive scale. The facility has also faced repeated stop work orders from the city of Vineland, indicating ongoing compliance issues beyond the generator permits.

A spokesperson for the New Jersey Department of Environmental Protection said the agency has issued no permits for power generators at the DataOne facility in Vineland and has no applications under review. The spokesperson added that a full compliance determination must still be made before any final action. Nebius and Microsoft have not issued responses to the allegations. DataOne’s only public statement was a general commitment to meeting all applicable requirements, which the drone footage appears to contradict.

Buckheit, who previously led the EPA, said the industry’s rush to market appears to prioritize speed over compliance, and that DataOne’s operators seem to operate on a principle of asking for forgiveness rather than permission. The allegations raise questions for U.S. policymakers about oversight of rapidly expanding AI infrastructure, particularly in residential areas near schools. The case remains under review by state regulators, and the ongoing resident lawsuit adds another layer of scrutiny to the facility’s operations.

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