NJ nears 40 local data center bans, with Jackson and East Brunswick among latest votes
New Jersey is approaching 40 municipal bans on data center construction, with Jackson and East Brunswick among the latest to enact prohibitions due to resident concerns about rising electric bills and environmental impact. While CoreWeave's project in Kenilworth continues despite opposition, several townships face lawsuits from developers over these bans. Sayreville Borough has also approved a temporary moratorium.
New Jersey is experiencing a rapid increase in local bans on data center construction, approaching 40 statewide. Jackson Township recently became the 38th community to adopt a ban with a 4-1 council vote, following similar actions the previous night by Stafford Township, North Brunswick, and East Brunswick. These bans are largely fueled by resident concerns over rising electricity bills and the protection of local resources, particularly within areas like the Pinelands National Reserve.
Activist groups like Climate Revolution Action Network New Jersey (CRAN) and the Pinelands Alliance have been instrumental in raising awareness. Heidi Yeh, Policy Director for the Pinelands Alliance, highlighted a "redevelopment loophole" where initial zoning changes for data centers receive little public notice, leading to resident frustration when projects are nearly finalized. Manchester Township has also introduced a ban, further indicating the trend within the Pinelands region.
Amidst these bans, some projects continue to draw controversy. CoreWeave's AI data center in Kenilworth, built on a former Merck property, has faced public opposition despite Mayor Linda Karlovitch's defense of its economic benefits and assurances regarding its environmental impact, including a dedicated power substation and a closed-loop cooling system. The project, involving a $322 million purchase by CoreWeave and backed by Nvidia, has been under development for nearly two years.
The escalating situation has led to legal challenges. Hexa Builders is suing Monroe Township for $300 million over property use loss due to a data center ban, and National Land Developers has sought to invalidate Andover Township's ban in court. A proposed data center in Holmdel, Monmouth County, suggests its recent ban may also face legal scrutiny. Other townships that have recently passed bans include Howell, Bayonne, Jersey City, Warren, and Neptune, while Sayreville Borough enacted an 18-month moratorium.