Vineland Board Approves Controversial Data Center Phase 2 Amid Local Opposition

Key points

• Vineland's Planning Board voted 8-1 to approve Phase 2 of the data center after a six-hour public hearing that ended near midnight.
• Phase 2 adds 600,000 square feet to the project, which aims to reach a total size of 2.6 million square feet.
• The facility is designed to generate its own power using 300 megawatts of Bloom Energy fuel cells and a 1.5-million-gallon liquefied natural gas tank.
• Residents voiced concerns regarding a humming noise, high water consumption, and potential environmental impacts, with no speakers supporting the plan during the hearing.
• The approval was significant for Nebius Group, as the site represents up to 37% of the company's 2026 connected-power target.

Background

This development follows earlier reports of a stop-work order issued by Vineland city officials in June 2026, who alleged that DataOne began installing fuel cell units and an LNG tank before receiving proper approval. The current approval resolves that immediate regulatory hurdle for the second phase of construction.

How outlets are covering it

NBC10 Philadelphia focused on the procedural outcome and the board's justification that the project complies with local noise ordinances and zoning laws. WHYY emphasized the environmental and social costs, highlighting that the Bloom Energy units would release over 2 billion pounds of carbon dioxide annually and that the project would consume 8 million gallons of water per year. 24/7 Wall St. and GuruFocus analyzed the financial implications, noting that DA Davidson analyst Gil Luria reversed a 30% price target cut for Nebius Group within one week of the approval, viewing the Vineland site as critical to the company's 2026 revenue goals. Sustain SJ, a local advocacy group, criticized the board for ignoring public safety risks, while board member John Casadia was the sole dissenting vote, citing a lack of transparency from the developer.

Why it matters

The approval of the Vineland data center is a pivotal moment for AI infrastructure development, as it secures a significant portion of Nebius Group's planned capacity. It highlights the growing tension between rapid technological expansion and local environmental concerns, setting a precedent for how communities may respond to large-scale energy-intensive projects. For investors, the resolution of this regulatory risk validates the company's ability to convert contracted power into operational assets, directly impacting its revenue trajectory for 2026.

What to watch

DataOne plans to complete construction and begin full operations later in 2026. The company must still secure additional permits from the New Jersey Department of Environmental Protection and a state certificate of operation for the on-site energy generation. Residents and advocacy groups may continue to monitor the project for compliance with noise and water usage regulations, potentially leading to further legal or administrative challenges.