Vineland City Council Delays $6.2 Million Loan for Controversial Data Center Project
January 4, 2026
A major data center development in Vineland, New Jersey, has hit a political and public relations hurdle, highlighting the growing tensions between rapid digital infrastructure expansion and local community concerns over resources and transparency. The Vineland City Council has tabled a resolution for a $6.2 million loan to DataOne Sustainable Datacenter, a company constructing a massive data center campus in partnership with the Netherlands-based Nebius Group.
The decision followed a council meeting last month attended by over 100 members of the public, all of whom used the public comment period to voice opposition to both the project and the proposed loan, which was intended to cover a portion of construction costs. The scale of the facility is significant: the 2.4-million-square-foot campus will eventually house six 220,000-square-foot data server buildings. Its initial power requirement is approximately 300 megawatts, with future expansion phases potentially increasing demand to 1 gigawatt. The complex will also require an estimated 1.1 million gallons of water annually.
These resource demands are at the heart of local opposition. Residents expressed fears that the facility, despite plans for initial “behind the meter” self-supply via gas-fired generation, would eventually strain the public grid and increase consumer electricity prices. The project falls within the service area of the Vineland Municipal Electric Utility (VMEU), New Jersey's only municipally owned electric utility. With a maximum capacity of roughly 132 megawatts, the VMEU can supply less than half of the data center's initial 300-megawatt need.
Concerns also extend to environmental impact. Opponents, including Terri Reese, a Democratic candidate for the U.S. House, cited potential emissions from the gas generators and the substantial water draw in a region under persistent drought warnings. Victoria Lods, a Cumberland County Commissioner, and resident Zac Landicini, an organizer with Sustain New Jersey, criticized the project's lack of public transparency and input, arguing that community backlash is intensifying now as the first phase nears completion because plans were not shared earlier.
The project's importance is underscored by a recent five-year, multibillion-dollar deal with Microsoft, which has prompted small-scale operations to begin in late 2025. However, the council's move to table the loan resolution signals unresolved local challenges. DataOne Sustainable Datacenter has not publicly commented on the delay. The situation in Vineland reflects a broader industry reckoning, where the economic promise of data centers must be balanced against tangible local concerns over infrastructure, utility rates, and environmental stewardship.
Source: capemaycountyherald
