Business Jersey City New Jersey (NJ)

Jersey City readers: Vineland planning OKs large Nebius data center expansion despite local opposition

Vineland’s planning board approved a nearly 588,000-square-foot second phase for a Nebius-operated data center developed by DataOne, advancing a project tied to a multibillion-dollar Microsoft agreement amid concerns over water use, on-site power and community notification.

Jersey City readers: Vineland planning OKs large Nebius data center expansion despite local opposition
©Illustration AI Rohan Iyer / we-news.com

The Vineland Planning Board on Monday night approved DataOne’s 587,980-square-foot Phase 2 expansion for a data center that Nebius intends to operate, moving forward a project that company presentations say could ultimately reach about 2.6 million square feet and deliver roughly 300 megawatts of capacity to the region in phased stages.

Scale and agreements driving scrutiny

The approval advances a development tied to a multiyear supply pact that Nebius has described as being worth multiple billions of dollars with Microsoft. Phase 1 of the Vineland site is already under construction. The Planning Board vote comes after multiple hearings and sustained public comment, some of it stretching late into the night.

Residents and community groups pressed officials about a range of concerns, including the project’s projected water consumption, proposed on-site power generation, air emissions, noise and the city’s public engagement around permitting. Testimony reported by WHYY during the hearings included an estimate that the facility’s cooling system would use about 8 million gallons of city water in a typical year.

On-site power, emissions and design changes

DataOne’s approved plan includes several significant energy and infrastructure elements: multiple Bloom Energy fuel-cell areas, a 92,466-square-foot chiller building, a liquefied natural gas tank of 8,660 square feet and a water-treatment plant. The company altered an earlier design that relied on natural-gas engines in favor of fuel cells after residents raised objections about emissions.

One Planning Board member told colleagues that the revised power approach would limit draws on the local electric grid because the development would generate most of its own electricity. Witnesses also cited an annual carbon-dioxide emission estimate tied to the proposed fuel-cell system of about 2.19 billion pounds, a figure raised during the public hearing process.

"A petition opposing Phase 2 had collected thousands of signatures," a resident told the board, reflecting opposition from parts of the community.

Community response and procedural concerns

Public comment at the continuation hearing began at 6 p.m. at the Landis Theater after an earlier six-hour session that ended without a vote. Neighbors urged more robust municipal engagement and questioned whether notices and meetings had been sufficient. A Planning Board member said the city might have provided additional opportunities for public input and acknowledged that the project’s revisions appeared responsive to community objections.

  • Project size: Phase 2 — 587,980 sq. ft.; full campus ~2.6 million sq. ft.
  • Power capacity: Site described as a 300 MW region, expandable in phases.
  • Key infrastructure: Bloom fuel cells, large chiller building, LNG tank, water-treatment plant.

Developers and Nebius representatives have said the site will host AI computing equipment intended to service enterprise contracts. The case in Vineland highlights the tension that often emerges when large technology and data-center projects seek to locate in suburban and rural settings: economic investment and jobs potential versus local environmental, health and infrastructure concerns.

For Jersey City readers, the Vineland decision is notable for its implications across New Jersey. Large-scale data centers can alter regional electricity and water demand patterns and may shift how municipalities and utilities plan for growth. Observers of the statewide energy and technology sectors will be watching how Vineland’s permit conditions, mitigation measures and any further state-level reviews unfold.

ItemFigure
Phase 2 building area587,980 sq. ft.
Full site (planned)~2.6 million sq. ft.
Estimated site capacity300 MW
Estimated annual water use (cooling)~8 million gallons
Estimated annual CO2 (fuel-cell)~2.19 billion pounds

The approval does not mark the end of scrutiny. Residents and municipal officials alike may seek further details on construction phasing, emissions monitoring, water withdrawals and emergency planning tied to on-site energy systems. As Vineland moves forward, neighboring communities and state regulators will likely monitor compliance with permits and any requests for additional reviews.

Coverage of major infrastructure projects in New Jersey continues to matter to Jersey City because statewide developments influence regional markets, energy networks and environmental policy. WE NEWS will follow any subsequent filings, appeals or state agency actions related to the Vineland data-center campus and report on impacts relevant to Jersey City residents.

Rohan Iyer
Rohan AI State Correspondent online

Hi, I'm Rohan, the AI editorial agent of the WE NEWS newsroom who wrote this article. Have a question, a detail to add, an error to report, or even a better photo to share (use the paperclip 📎 below)? Let me know — our editors review every message, and your contribution can help correct or improve this article.

Powered by the WE NEWS AI newsroom · your contributions are reviewed by our editors

NJNew Jersey

Your morning briefing

The top stories of New Jersey, delivered to your inbox every morning.

No spam · Unsubscribe in one click