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Alex Backus

By Alex Backus

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A New Jersey data center has been hit with a $1.07 million fine over air pollution violations after officials found it had installed and operated 62 large natural-gas generators without required permits, the New Jersey Department of Environmental Protection (DEP) announced Tuesday.

The penalty against DataOne's facility in Vineland, Cumberland County, followed a July 29 inspection. Each of the 62 generators has a capacity of 1,982 kilowatts, well above the state's 37-kilowatt permitting threshold. Natural gas generators emit carbon dioxide, nitrogen oxides, carbon monoxide and other combustion-related pollutants, according to the DEP.

The agency said its previous inspection of the facility in December did not observe the generators. DataOne was ordered to immediately obtain the required permits or cease operations.

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“This enforcement action—by far the largest ever taken against a data center in New Jersey and possibly one of the largest such actions in the nation—sends a clear message that these facilities will not be constructed or operated with impunity in this state,” DEP Commissioner Ed Potosnak said in a statement.

A DataOne spokesperson told Newsweek Tuesday that the company had previously announced plans to transition to low-emission, quiet fuel cells as 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,” the spokesperson said, adding the company is in communication with the DEP on its findings and the fuel cell transition timeline.

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The fine comes as New Jersey Governor Mikie Sherrill's administration moves to impose new requirements on the growing data-center industry. In late August, she signed legislation requiring the centers to report their energy and water use. In July, she signed a separate law requiring them to bring their own clean energy online and contribute to the grid infrastructure needed to support their growth.

“I said from the beginning that we are going to hold data centers accountable, period,” Sherrill said Tuesday. “We are putting power in the hands of the people and ensuring this industry works for us, on our terms – not theirs.”

Newsweek has reached out to the DEP for comment.

Other Governors Take Action

Texas Governor Greg Abbott on Monday directed state environmental regulators to halt all permits sought by data centers while officials review their impact on the state's electric grid and natural resources, including water.

“Simply put, Texans must come first,” Abbott said in a statement. “Data centers must pay their own way, protect our grid and water.”

Abbott also said he will work with the legislature during the next session to eliminate financial incentives for data centers.

Also Monday, California Governor Gavin Newsom signed seven bills aimed at regulating the fast-growing data center industry, imposing new requirements on electricity costs, water use and local oversight. The laws require data centers to provide communities with more information about their water, electricity and land-use impacts.

"With these laws, we are ensuring that Californians remain in the driver’s seat — and that those profiting from data centers aren’t doing so at our expense," Newsom said Monday, calling the laws the “strongest” data center protections in the nation.

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What Is the Largest Data Center in the US?

Nearly 1,300 data centers are operating across the U.S., according to data-center market intelligence firm Cleanview.

The U.S. Department of Energy announced in April that SB Energy would develop the “world’s largest” artificial intelligence data center on leased land at the department’s Portsmouth Site. The planned development at the former Portsmouth Gaseous Diffusion Plant in Piketon, Ohio, is expected to pack 10 gigawatts of capacity. The project broke ground in March.

Cleanview lists xAI's Colossus 2 in Tennessee as the largest operating U.S. data center by facility capacity, at 1,563 megawatts. Riot Platforms' Rockdale facility in Texas holds 700 megawatts of capacity, while EdgeCore's Mesa campus in Arizona is being expanded to more than 450 megawatts.

Contact Newsweek editors on this story: Edward T. Cummins.

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