Montgomery Township Now Faces a Fierce Data Center Battle at the Former J&J Site
E. Kahn Development has filed a lawsuit against Montgomery Township, New Jersey, challenging an ordinance that effectively bans data center construction within the township. The developer is seeking $300 million in damages, claiming the ban was based on public hysteria rather than sound land use planning. The ordinance, which also bans immigrant detention sites, was a preemptive strike by local officials responding to concerns over data center impacts like noise, water, and electricity strain.
E. Kahn Development (EKD) has initiated legal action against Montgomery Township, New Jersey, filing a lawsuit on July 31 in Superior Court. The developer contends that the township's recently enacted ordinance, which prohibits data center construction, lacks a valid basis. EKD is seeking $300 million in damages, arguing that the Township Committee's decision was driven by "public hysteria and political attention" rather than sound land use principles.
The challenged ordinance, passed on June 18, bans both large-scale data centers and immigrant detention facilities. Montgomery Township officials presented the measure as a preemptive move to assert local control amid growing interest in data center development and federal immigration enforcement in suburban areas across New Jersey. The ban addresses community concerns about noise, heat, water consumption, and strain on electrical grids associated with AI-driven data centers.
EKD attorney Craig M. Gianetti argued before the Montgomery Township Committee that the township should evaluate rather than prohibit such developments, highlighting the former Johnson & Johnson site (now Kenvue site) in Skillman as an underutilized industrial property with existing high-energy infrastructure suitable for data operations. Gianetti suggested that rigorous zoning standards could mitigate concerns without a categorical ban. Montgomery Township Planner/Administrator Lori Savron stated that the township does not comment on pending litigation. The lawsuit follows earlier public pushback and legal agreements related to affordable housing plans for the Kenvue site.