Microsoft-Backed AI Data Center Accused of Operating 62 Unpermitted Turbines in $19.4B Deal

Microsoft-backed AI data center faces backlash over 62 unpermitted gas turbines and 1.5M-gallon LNG tank -- issues with $19.4B facility range from illegal construction to noise pollution

The DataOne data center in Vineland, New Jersey, has faced a slew of complaints from the community since construction began in 2025. According to Stand.earth, the project has reportedly been operating several unpermitted gas turbines on site, spewing air pollution in the area near two local schools. Aside from that, the site has also faced allegations of constructing an unpermitted 1.5-million-gallon liquefied natural gas storage tank and of unacceptable noise levels at night, which affected residents within a half-mile radius of the data center. Matt Williams, chairperson of the Sustain South Jersey group, told Tom's Hardware that construction had already begun even before Nebius signed a multi-year agreement to "deliver dedicated capacity to Microsoft from its new data center in Vineland, New Jersey," in October 2025. However, the residents only became aware that the project was a data center after the $19.4 billion deal to secure around 100,000 Nvidia GB300 GPUs for the tech giant was made public. Vineland residents began seeing references to the data center in various government documents, prompting several questions to the city government. Because of this, the city called a town hall meeting last January 2026 -- several months after construction on the data center had already begun, with DataOne CEO Charles-Antoine Beyney admitting that the meeting should have been initiated several months before. A few weeks before the town hall, some people living within a half-mile radius of the site started complaining about noise from the development. While they couldn't confirm the source of the noise, it was often described as a low hum, similar to that of a generator. A later investigation revealed that the site had 62 gas turbines deployed in the area, with at least 45 running at any given time. This is similar to what SpaceXAI has done in Memphis, Tennessee, where it deployed 69 unpermitted natural gas turbines to power its data centers. While the company has since promised to remove these polluting generators, it will do so only over a span of one year, as they're being slowly replaced by a 1.2-GW on-site power plant. There have also been concerns that the site's stormwater management system does not comply with the state's regulations. A third-party engineering review stated that if these issues are not fixed, they could result in on-site and off-site flooding, especially given the site's massive 55-acre size. The experts also noted that the data center has "underestimated the annual groundwater recharge by at least 20 million gallons per year," which could result in lower aquifer levels and reduce the amount of water available or the water quality for the people living in the area. "The incident should shatter the illusion that Microsoft is a 'good neighbor' or in any way more responsible than the other Big Tech companies," Stand.earth Senior Campaigner Nathan Taft said in the statement. "This investigation has revealed that far from 'doing this work differently than other' as it promised, Microsoft is drawing directly from Elon Musk's xAI playbook of doing the damage first and asking for permission later." In an interview with Tom's Hardware, Nathan said that even though Microsoft does not directly own or operate the Vineland data center, it stands to reason that the tech giant should do something about all these complaints, as it's the one that has contracted Nebius for the computing power, which resulted in DataOne's construction project. He compared this to a contractor making a mess on their client's neighbor's property. Even though a third-party provider -- DataOne -- was at fault for the issue, the fact that the people have already been complaining should give Nebius pause and compel Microsoft to do something. DataOne's actions in New Jersey directly contradict the promise Microsoft made back in January 2026, and residents are asking the tech giant to stand by its word. Although the concerns about air and noise pollution are technically not mentioned in the company's "community-friendly" commitments, these issues still impact the quality of life of the people living around the DataOne data center. Aside from that, the unpermitted construction shows it does not adhere to the rules of Vineland. "The developers have been 'act first, pay the fine, and ask for forgiveness later,'" says Mr. Williams. Follow Tom's Hardware on Google News, or add us as a preferred source, to get our latest news, analysis, & reviews in your feeds.

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

It's allegedly been running dozens of gigantic generators without a permit. 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 DataOne facility was operating at least 45 of the site's 62 generators simultaneously. The facility allegedly doesn't have permits for any of them. DataOne is located around 40 miles outside of Philadelphia in Vineland, New Jersey. It provides AI computing power to Microsoft as part of a $17 billion deal with Dutch AI infrastructure giant Nebius. This data center has been controversial since breaking ground in 2025. There have been persistent noise complaints, contentious zoning debates and major blowback from residents. It's located just a mile from two schools. In the age of AI, it's worth discussing the size of all of this stuff. The DataOne site will eventually become a 2.6 million-square-foot behemoth. A standard data center, of the type that powers cloud services, typically comes in at around 100,000 square feet. That's an exponential size difference. The generators are also absolutely massive. Each one is the size of a tractor-trailer or semi-truck. These gigantic machines are gas-powered and emit boatloads of air pollution that have been linked to health conditions like asthma and heart attacks. They are also really, really loud. The noise complaints have led to a lawsuit by residents, which is ongoing. So any site using this type of generator requires "a final permit before bringing" them online "and certainly before firing them up," according to former EPA chief Bruce Buckheit. The thermal drone footage suggests that many are operational, all without permits. Buckheit believes that DataOne's actions "violate federal law" and that the company should immediately cease operations and pay a fine for "their illegal emissions." The facility's lack of proper operational permits has been confirmed by a spokesperson with the New Jersey Department of Environmental Protection. They said that the agency "has issued no permits, nor are any permit applications under review for power generators at the DataOne facility in Vineland." However, the spokesperson also said the agency has to make "a full compliance determination." DataOne hasn't responded to pointed questions regarding the unpermitted generators but said it "remains committed to meeting all applicable and environmental and permitting requirements." That thermal drone footage seems to suggest otherwise. Also, the company has been repeatedly dinged by the city of Vineland, which has issued multiple stop work orders. Nebius and Microsoft haven't issued responses to the allegations. "It seems that this industry, in particular, values speed to market more than almost anything else," Buckheit noted. He went on to say that the people behind DataOne "seem to believe that it's better to ask for forgiveness than for permission." That does seem to be the underlying credo behind most modern AI companies.