New Jersey environmental regulators fined the data center operator $1 million after discovering 62 natural gas generators that had been installed and operated without the required permits.

The facility, located in the New Jersey community of Woodbridge, is operated by EdgeConneX, a data center company backed by Microsoft and other investors. The generators were intended to provide backup power for the facility, but regulators said their operation resulted in emissions of nitrogen oxides and other pollutants.

State officials said the generators had been operating without the necessary air permits, placing the facility in violation of New Jersey environmental regulations.

The case highlights growing concerns surrounding the environmental impact of large data centers as demand for artificial intelligence and cloud computing continues to drive construction of massive facilities. Data centers require substantial amounts of electricity, and operators often rely on generators as backup power sources.

The $1 million penalty follows the state's investigation into the facility's emissions and permitting violations. Regulators said the company must also take steps to address the violations and comply with environmental requirements.

The findings come as communities across the country face increasing debates over the infrastructure, energy use, and environmental consequences associated with the rapid expansion of the data center industry.