Jersey City bans data centers on industrial land
Credit: Fiaz Mohammed on Unsplash
Jersey City this week banned the construction of new AI data centers, joining a growing number of municipalities across the country that have placed restrictions on the power-hungry facilities. The Jersey City Council on Wednesday unanimously voted to pass an ordinance banning data centers in the city’s industrial zones, where such facilities would otherwise be permitted. Jersey City is now the 34th municipality in New Jersey to ban data centers, with more than one million Garden State residents living in municipalities where the facilities are banned.
Ordinance 26-057 amends the city’s Land Development Ordinance to remove “cyber hotels” and data centers as permitted principal uses in the city’s industrial district, according to HudPost.
Jersey City already has five data centers that are located inside existing office buildings shared with other tenants; the new law does not affect the existing facilities, according to Jersey City Mayor James Solomon. The ordinance blocks new standalone data centers from industrial land.
The policy change fulfills a recommendation in the city’s Master Plan, which dates to 2000 and calls for a thorough review of data center development. A 2020 update went further, recommending that the city eliminate data centers as a permitted use in industrial zones.
On June 30, the city’s Planning Board recommended the amendment in a 6-0 vote, and the Council passed it on first reading on July 15.
“Data centers eat up power, drive up utility bills for every ratepayer in this state, and employ almost nobody,” Solomon said. “Our industrial land should be put to work for the people who live here by creating real jobs with real wages. I appreciate the tireless work of climate advocates and the City Council ensuring Jersey City is protected from data centers.”
Supporters of the ban have argued that the land being used for data centers should instead go to employers rather than facilities that increase utility costs and pollute the environment.
Local officials collaborated with grassroots activists from the Climate Revolution Action Network (CRAN) on the ordinance. The climate advocacy group has been one of the leading voices in the fight to ban data centers across New Jersey.
“Data centers are a bad deal for the neighborhoods around them. They drive up everyone’s electric bills and barely hire anyone once the construction is done,” Ben Dziobek, executive director of CRAN, said.
“When communities like Jersey City ban data centers, there’s more space for businesses that actually put people to work instead of server farms that just leave residents paying more.”
Council members have called for a statewide moratorium, similar to the one enacted by New York Gov. Kathy Hochul in July, making New York the first state in the nation to enact such a ban.
The moratorium temporarily bans the construction of large new data centers that consume 50 megawatts or more of power, giving officials more time to develop measures to protect residents and the environment.
Those officials have argued that local governments should not have to fight these projects one at a time. Jersey City, the state’s second-largest city, joins other municipalities that have enacted similar bans, including Bayonne, Howell, Neptune Township, Millville, Red Bank, Warren Township, Andover Township, and about two dozen more municipalities, with more bans expected soon, as Patch reported.
In May, Gov. Mikie Sherrill announced a plan to “hold data centers accountable while positioning New Jersey to lead in AI innovation.” The governor’s plan includes establishing fair-share rules to make sure data centers contribute to grid infrastructure needs and developing statewide standards to help municipalities negotiate with companies.
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