Medford Council Enacts Data Center Prohibition, Faces Unforeseen Consequences
The Medford Township Council has unanimously adopted an ordinance prohibiting data centers in all zones due to concerns over high water and electricity consumption. This decision, made despite the need for new revenue, is facing scrutiny for its broad definition, which may have unintended implications for other technological uses. A subcommittee is being formed to refine the ordinance.
The Medford Township Council in New Jersey has unanimously enacted an ordinance that prohibits data centers within its borders, designating them as a "nonpermitted use in all zones." This decision, made on June 23, despite the municipality's acknowledged need for new revenue sources to mitigate future property tax increases, was driven by concerns regarding the significant environmental impact of large-scale data centers, citing potential water usage of three to five million gallons daily for cooling and energy generation. The council also noted potential depletion of critical groundwater resources and strain on electricity grids, with some facilities requiring up to 300 megawatts.
However, a subsequent review by the township planning board highlighted unforeseen repercussions due to the ordinance's broad definition of a "data center," which could inadvertently impact existing land uses, from medical offices to cellphone towers. Planning board members, including Chad Muckenfuss, suggested the ordinance was "written incorrectly" and could eliminate beneficial smaller technology facilities. Township Planner Scott Taylor recommended considering distinctions between different types of data centers and forming a subcommittee to refine the ordinance.
Local landowner Earl Stahl, who owns a 65-acre tract suitable for a data center near existing distribution circuits, argued that such a facility could generate significant annual real-estate taxes ($2-10 million) and create employment. He suggested modifying the ordinance to allow for data centers that meet specific environmental criteria. Public comments at the hearing were divided, with some residents like Jason Kleinman and Christine Evans expressing strong opposition to data centers in Medford, citing environmental concerns and a lack of clear long-term plans for such facilities, while others acknowledged the potential financial benefits.