Towns use home rule to block data centers, a step beyond Sherrill
Many New Jersey municipalities are utilizing "home rule" zoning powers to ban or restrict data centers due to local concerns over electricity and water consumption, noise, and land use, despite a state-level plan from Gov. Mikie Sherrill to regulate them. This local opposition has resulted in bans in over two dozen towns, including Neptune and Pemberton, and a lawsuit against Andover Township by a developer challenging its ban. Activist groups have also successfully blocked projects, such as one in New Brunswick.
Gov. Mikie Sherrill's statewide plan to restrict—but not ban—artificial intelligence data centers in New Jersey has been met with skepticism by numerous local leaders who deem it insufficient. Consequently, at least two dozen municipalities across the state have taken advantage of New Jersey's powerful "home rule" system since February to prohibit data center facilities within their borders.
Public sentiment largely supports these local initiatives, with a Stockton University poll revealing that 56% of registered voters would back a ban in their town, and four out of five expressing concern about data centers' impact on electricity costs. While Gov. Sherrill has introduced a regulatory plan including community benefit agreements and a separate power rate for data centers to address grid pressure, towns like Pemberton and Neptune have adopted ordinances outright banning the facilities.
Grassroots opposition, championed by groups such as the Pinelands Alliance and The Climate Revolution Action Network, has proven effective. The Climate Revolution Action Network claims a victory in New Brunswick, where a proposed data center was redirected to become public space. However, these local actions are not without legal repercussions; National Land Developers LLC has filed a lawsuit against Andover Township, alleging its ban is "arbitrary, capricious and unreasonable."
Birdie Green, co-founder of the Sussex Visibility Brigade, views such lawsuits as a corporate intimidation tactic aimed at depleting municipal resources. The ongoing conflicts highlight a significant tension between state-level regulation and local authority regarding data center development in New Jersey.