Data center activity in New Jersey
New Jersey's regulatory environment is marked by high opposition effectiveness, with at least 17 projects blocked versus only 2 approved despite resistance, alongside at least 34 moratoriums enacted and only 2 rejected. The zoning balance is notably negative, with 7 approvals against 11 denials, indicating that the permitting process itself has become a significant barrier. Unlike neighboring Pennsylvania, where zoning denials also outpace approvals but the project pipeline is much larger, New Jersey's tighter geography and denser population create more frequent land-use conflicts. With 22 active companies and 395 clips, the market retains meaningful interest, likely driven by proximity to New York City's connectivity ecosystem, but developers face one of the most hostile regulatory environments on the East Coast. The ongoing downward trend suggests that opposition movements continue to gain strength rather than plateau.
New Jersey's regulatory environment is marked by high opposition effectiveness, with at least 17 projects blocked versus only 2 approved despite resistance, alongside at least 34 moratoriums enacted and only 2 rejected. The zoning balance is notably negative, with 7 approvals against 11 denials, indicating that the permitting process itself has become a significant barrier. Unlike neighboring Pennsylvania, where zoning denials also outpace approvals but the project pipeline is much larger, New Jersey's tighter geography and denser population create more frequent land-use conflicts. With 22 active companies and 395 clips, the market retains meaningful interest, likely driven by proximity to New York City's connectivity ecosystem, but developers face one of the most hostile regulatory environments on the East Coast. The ongoing downward trend suggests that opposition movements continue to gain strength rather than plateau.
How is this scored?
Summit Council is considering a revised ordinance that could ban AI data centers in the city. Concerns over energy consumption, infrastructure strain, and neighborhood impacts are driving the potential ban. This action would represent a significant restriction on data center development in Summit.
The Hopewell Township Planning Board granted preliminary site plan approval for a 108,000-square-foot warehouse on Route 31 after a lengthy debate focused on architectural details, lighting, and traffic. The board also addressed concerns about the building potentially being converted into a data center, with the applicant stating no such intention and the township confirming current zoning prohibits data centers.
Old Bridge Township has enacted a ban on data center development within its jurisdiction. Concurrently, Sayreville Borough has implemented a pause or moratorium on such projects. Both actions reflect governmental responses to data center development in Central New Jersey.
Shamong Township in New Jersey has introduced an ordinance to designate data centers as a non-permitted use in all zones, effectively making it very difficult for them to be built. Officials cited the lack of necessary infrastructure like power, water, and sewer as reasons, along with a desire to proactively prevent future development arguments. The township solicitor clarified that while not a technical 'ban,' it serves the same purpose.
Maplewood, New Jersey, is considering enacting a precautionary ban on both data centers and detention facilities. According to Mayor DeLuca, this measure is proactive and no current proposals for such facilities exist within the town. The potential ban would prevent future data center developments in the area.
Andover Township, New Jersey, has enacted a ban on data centers, leading to a lawsuit from Pennsylvania-based National Land Developers. The developer is challenging the
Cherry Hill Township Council has unanimously approved on first reading an ordinance to ban large-scale AI data centers within the township, with a final vote pending. Mayor David Fleisher stated the ban is a proactive approach to protect neighborhoods and quality of life. The decision follows a report highlighting potential impacts on energy, water, and noise.
Residents in Kenilworth, New Jersey, participated in a cross-partisan "National Day of Action" protest against a CoreWeave AI data center project. The community expresses outrage over lack of consultation, perceived land seizure, water usage concerns, and state tax credits benefiting the developer. Despite ongoing protests, the project is under construction.
A developer is suing Monroe Township for $300 million. This lawsuit stems from the township's decision to enact a ban on data centers. The legal action challenges the local government's restrictive policy.
A developer has filed a lawsuit against Andover Township after the Township Committee unanimously passed an ordinance prohibiting data center construction. The ban on data centers was enacted a month and a half prior to the lawsuit.
Public opposition to data center development is growing in New Jersey, particularly in Vineland where residents oppose a Microsoft-involved project due to concerns about energy costs, water usage, noise, and transparency. Governor Mikie Sherrill has signed the Data Center Fair Share Act, creating a new ratepayer class for data centers to ensure they cover their energy costs. Similar backlash is noted in Michigan, indicating a broader national skepticism towards data center expansion.
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.
Andover Township, New Jersey, had enacted a ban on data centers following public outcry. However, National Land Developers LLC is now suing the township, arguing the ban is illegal. Residents and the mayor are prepared to fight the lawsuit to protect the town's environment and uphold the ban.
The Berkeley Heights Council is set to consider a township-wide ban on data centers at its upcoming meeting. The council will also address a plan to expand the police force and other local ordinances and spending. This suggests a significant local government action regarding data center development.
New Jersey is urged to enact a statewide moratorium on AI data centers due to concerns about their massive consumption of water and electricity, similar to action taken by New York's governor and several New Jersey towns. The author argues that data centers pose significant risks to power reliability, water supplies, noise, property values, and quality of life for New Jersey residents.
Jersey City's Mayor and City Council have initiated steps to ban new AI data centers from being built on industrial land within the city. This move aims to prevent further data center development in these areas. The ban is currently in the proposal stage, indicating an active government effort to regulate data center expansion.
Data centers are significantly increasing electricity costs in New Jersey and the broader PJM Interconnection region, accounting for billions in capacity auction costs. This has led to over two dozen municipalities in New Jersey, including Mansfield and Neptune Townships, banning data centers, while New York has enacted a one-year moratorium to develop new regulations. State and national leaders are now debating solutions to the grid strain and rising costs.
Mansfield Township has revised its zoning regulations to reinforce an existing ban on data center development within its jurisdiction. This action aims to strengthen the township's ability to restrict or prohibit data centers through updated land use rules.
A New Jersey town has enacted a ban on AI data centers following public meetings that were reportedly chaotic. This decision has led to the town being sued.
Jersey City officials have introduced an ordinance to ban data centers as a primary use on industrial land, aiming to preserve land for job-creating uses and mitigate strain on utility resources. The proposed measure, Ordinance 26-057, seeks to amend the city's Land Development Ordinance. A final vote by the City Council is scheduled for August 19.