Hexa Builders files $300M lawsuit challenging Monroe Township, NJ, data center ban
Monroe Township in New Jersey is being sued for $300 million by Hexa Builders after the township enacted a ban on data center construction. Hexa Builders claims the ban is unconstitutional, despite earlier plans allowing for data centers on their property. The lawsuit was filed following public opposition to the potential electricity and water demands of the project.
Monroe Township, New Jersey, is facing a $300 million federal lawsuit from Hexa Builders, a Princeton-based development company, following the township's decision to ban data center construction. Hexa Builders accuses local officials of acting "arbitrary and capricious" by enacting one of the state's first municipal ordinances against data centers, especially after the town had previously amended a redevelopment plan to permit data centers on Hexa Builders' 172-acre property at 3043 South Black Horse Pike.
The lawsuit, initially filed in Gloucester County Superior Court in June and later moved to federal court in Camden, alleges the ban is unconstitutional and seeks damages for the loss of property use. The township's shift in policy came after increased public attention and concern, starting in January, regarding the significant electricity and water demands of AI data centers. Public meetings saw crowds questioning preliminary plans, and Mayor Greg Wolfe cited public feedback, including from groups like Pinelands Alliance and NJ Food & Water Watch, as influencing the decision to impose stricter restrictions.
Hexa Builders had filed an application on April 8 to amend its site plan for a million-square-foot data center, replacing a previous warehouse plan, and included a closed-loop cooling system to mitigate water concerns. However, the township proceeded with the ban. Monroe Township officials, in a June 9 statement, acknowledged that litigation was expected following their decision to implement an outright ban.
This legal challenge mirrors a similar situation in Andover Township, Sussex County, where National Land Developers also filed a lawsuit after their data center plans were blocked due to local opposition and an ordinance adoption. The ongoing disputes highlight growing public fears over potential spikes in electricity bills and resource exhaustion due to data center developments.