Nebius Vineland

• Developer / Operator: DataOne (builder/operator); Nebius (tenant, 10-year commitment)
• End Customer: Microsoft
• Location: Vineland, New Jersey
• Total Planned IT Capacity: Up to 300 MW
• BTM Generation: Originally 400 MW of Bergen gas engines; now pivoting to 328 MW of Bloom Energy fuel cells
• Grid Strategy: Primarily behind-the-meter, with approximately 5 MW from Atlantic City Electric
• Status: Phase 1 building complete; BTM power generation not yet operational; air permit pending with NJ DEP

Background

Nebius, the Amsterdam-based AI cloud company formerly known as Yandex N.V., is building its first major U.S. data center in Vineland, New Jersey, through a partnership with DataOne, a French company that manages advanced data centers. The 2.4-million-square-foot facility on a former industrial park site is designed to reach 300 MW of IT capacity and will host GPU infrastructure for Microsoft under a $17.4 billion, five-year agreement signed in September 2025.

Under the Microsoft deal, Nebius delivers GPU services in nine tranches during 2025 and 2026. Microsoft made upfront payments of $6.958 billion, with the remaining consideration invoiced monthly over the service terms of each tranche. According to Nebius's April 2026 20-F filing, the first tranche was delivered in November 2025 and the second in February 2026. If Nebius fails to meet agreed delivery dates after a grace period and cannot provide alternative capacity, Microsoft has the right to terminate that GPU service.

Power Strategy

The Vineland project's power strategy has undergone a significant shift driven by permitting challenges in New Jersey.

Original plan: Bergen gas engines. DataOne originally planned to install 36 Bergen B36:45V20AG lean-burn natural gas reciprocating engines, manufactured by Bergen Engines of Norway (formerly Rolls-Royce Bergen Engines), with a combined capacity of approximately 400 MW at 11.2 MW each. Bergen announced the first 12-engine, 130 MW order in June 2025, followed by the full 36-engine, 400 MW contract in November 2025. In December 2025, Bergen shared photos of the first four engines loaded for shipment from its factory in Norway.

Permitting obstacles. The air permit application has stalled at the New Jersey Department of Environmental Protection. The DEP issued technical deficiency notices focused on the "common control" relationship between the DataOne facility and a neighboring Corning glass manufacturing plant, which is already permitted as a significant air pollution emitter. If the state groups the two sites as a single source, the project would fall under a much stricter federal permitting regime (Title V major source review), requiring EPA oversight, public hearings, and potentially adding one to two years to the timeline.

Compounding this, Vineland qualifies as an overburdened community under New Jersey's 2020 Environmental Justice Law, which applies to communities where at least 35% of households are low-income or at least 40% of residents are minorities. Under this law, new facility permits can be denied outright in qualifying communities.

Pivot to Bloom fuel cells. On March 30, 2026, a representative for DataOne emailed the NJ DEP stating the project was "evaluating an alternative power technology that may offer significant environmental and deployment advantages." On May 20, 2026, Nebius announced a $2.6 billion partnership with Bloom Energy to deploy solid oxide fuel cells at its AI data centers. The announcement explicitly stated the fuel cells would replace "previously planned combustion-based technology" and "eliminate the need for reciprocating engines at the site." The first project will deliver 328 MW of installed capacity (approximately 250 MW guaranteed), with operations expected later in 2026. The deal is structured across three 10-year phases.

Bloom's fuel cells generate electricity without combustion, which would address both the air quality concerns and the permitting complications that have stalled the Bergen engine plan. A Vineland Planning Board special meeting on the amended site plan was scheduled for May 28, 2026.

Operational Status and Uncertainty

Despite Nebius reporting that the first two Microsoft delivery tranches were completed on time (November 2025 and February 2026), there are open questions about the site's operational status. Thermal image analysis by SynMax, featured in the Financial Times in March 2026, showed no heat signature coming from the data center. In the same month, nearby residents posted videos on social media capturing a persistent humming sound, though the source of the noise is unclear. It could reflect engine testing, construction equipment, cooling systems, or other site activity rather than full-scale power generation.

Nebius told the Financial Times: "All capacity tranches under our agreement with Microsoft to date have been delivered on time, and we currently expect to deliver the remaining tranches on schedule. As of now we are not aware of issues that would materially affect this."

Satellite imagery from January 2026 showed the first building complete with 32 air cooling units on the roof, with expansion construction underway, including vertical construction on one section and foundations being laid on another. No Bergen engines were visible at the site.

Community Response

The project has drawn opposition from Vineland residents concerned about noise, air quality, water usage, and the facility's proximity to sensitive wetlands near Manantico Creek. The site sits above the Kirkwood-Cohansey aquifer, which provides drinking water to roughly a million people. A heated town hall in January 2026 at the Landis Theater drew vocal opposition. The Sierra Club New Jersey has also raised concerns about air pollution from the gas engines and the facility's proximity to wetlands.

Generation Equipment

Original plan (Bergen engines):

• 36x Bergen B36:45V20AG: 11.2 MW each, ~400 MW total

Current plan (Bloom fuel cells):

• 328 MW installed capacity (~250 MW guaranteed) of Bloom Energy solid oxide fuel cells

Key Partners

• DataOne: Data center builder and operator
• Nebius: Tenant (10-year commitment)
• Microsoft: End customer ($17.4 billion, 5-year GPU services deal)
• Bloom Energy: Fuel cell provider ($2.6 billion, three 10-year phases)
• Bergen Engines: Original gas engine supplier (status of order unclear)
• Atlantic City Electric: Grid power (~5 MW)

Timeline

• March 2025: DataOne and Nebius announce Vineland data center partnership
• June 2025: Bergen Engines announces first 12-engine, 130 MW order
• September 2025: Nebius signs $17.4 billion, 5-year deal with Microsoft
• November 2025: Bergen announces full 36-engine, 400 MW order; first Microsoft GPU tranche delivered
• December 2025: Bergen ships first 4 engines from Norway
• January 2026: Phase 1 building complete per satellite imagery; expansion under construction
• February 2026: Second Microsoft GPU tranche delivered
• March 2026: Thermal analysis shows no heat from data center; residents report humming noise; DataOne emails DEP about evaluating alternative power technology
• May 2026: Nebius announces $2.6 billion Bloom Energy fuel cell partnership (328 MW), replacing Bergen engines
• May 2026: Vineland Planning Board special meeting scheduled on amended site plan
• Late 2026 (target): Bloom fuel cells operational