Monroe Township has requested the dismissal of a $300 million lawsuit against its data center ban
Monroe Township officials have requested the dismissal of a $300 million lawsuit filed by Hexa Builders, which challenges the township's data center ban. The lawsuit, initially moved to federal court over constitutional claims, is now subject to Hexa Builders' request to return to state court for local land use considerations. Meanwhile, Collingswood Borough has also enacted a ban on data centers.
Monroe Township officials requested the dismissal of a $300 million lawsuit filed by Hexa Builders, a Princeton-based real estate developer, challenging the municipality's data center ban. The lawsuit, initially filed in New Jersey Superior Court, was moved to federal court by Monroe Township, citing U.S. Constitution-based allegations including violations of the Equal Protections Clause and freedom of speech.
Attorney Todd Gelfand, representing Monroe, filed a letter arguing the lawsuit's invalidity, rejecting constitutional arguments and citing the township's right to amend zoning based on public objections. In response, Hexa Builders' attorney, Jim Maley, requested to move the non-constitutional parts of the complaint back to New Jersey State Court, arguing state courts have more expertise in local land use laws. U.S. District Judge Edward Kiel has not yet acted on these requests. Hexa Builders filed the original lawsuit after Monroe officials denied its application for a 1 million-square-foot data center following public outcry.
In a related development, Collingswood Borough in Camden County approved an ordinance to ban data centers and "computing nodes." Commissioner Jim Maley, who also represents Hexa Builders in the Monroe lawsuit, abstained from the vote after residents raised conflict of interest concerns, though the borough solicitor found no legal disqualification. Maley advocated for a six-month waiting period for the ban but acknowledged the town's lack of space for large data centers.