Ashtyn Asay 
Jersey City is taking steps to prevent new data centers from being built on the city’s industrially zoned land. On Wednesday, July 15th, Mayor James Solomon and the Jersey City Council introduced Ordinance 26-057, a measure that would amend the city’s Land Development Ordinance to prohibit data centers as the primary principal use on industrially zoned land. If approved, the ordinance would preserve some of Jersey City’s remaining industrial space for businesses that city officials said create more jobs for residents. Read on for more about the ordinance and what it would mean for Jersey City residents.
About the Proposal
The proposal comes as demand for AI infrastructure continues to grow nationwide, prompting increased interest from developers looking to build data centers. City officials argue that while these facilities require large amounts of electricity, water, and land, they generate relatively few permanent jobs.
“Data centers eat up power, drive up utility bills for every ratepayer in this state, and employ almost nobody. Our industrial land should be put to work for the people who live here by creating real jobs with real wages,” Mayor Solomon said in a press release.
The proposed ordinance has received broad support from the Jersey City Council. In the press release, Eleana Little, Ward E councilmember, said industrial land should remain focused on creating employment opportunities for Jersey City residents rather than housing facilities that require substantial infrastructure while offering limited long-term jobs. Jake Ephros, Ward D councilmember, also cited concerns about utility costs, saying residents are already facing rising energy bills and shouldn’t bear the financial burden of increased electricity demand tied to large-scale data centers. Joel Brooks, Ward B councilmember, echoed those concerns, pointing to the environmental impacts of AI data centers, including pressure on the electric grid and water supply. He said the ordinance reflects the city’s commitment to prioritizing neighborhoods over what he described as “Big Tech’s profits.”
Environmental advocacy groups have also praised the proposal. In the press release, Ben Dziobek, executive director of Climate Revolution Action Network (CRAN), said the ordinance is an important step toward protecting residents from increasing utility costs while state leaders consider broader regulations for AI infrastructure. The organization is also calling for a statewide moratorium on new large AI data centers until comprehensive standards are developed. Food & Water Watch North Jersey also voiced support for the measure, with North Jersey Organizer Sam DiFalco saying the ordinance responds to residents’ concerns about noise, energy consumption, water use, and potential impacts on utility rates.
How Could This Affect Existing Data Centers?
According to a list compiled by South Jersey Climate News, there are more than 80 data centers in New Jersey, with even more planned or under construction. Five of those are currently located in Jersey City.
- Centersquare – New York EWR1: 210 Hudson Street, Jersey City, NJ 07302
- One Evertrust Plaza: 1 Evertrust Plaza, Jersey City, NJ 07302
- Newport Financial Center: LeFrak Organization Inc, 111 Town Square Place, Jersey City, NJ 07310
- QTS Jersey City 1 DC1: 95 Christopher Columbus Dr, Jersey City, NJ 07302
- Lumen Jersey City: 1 Evertrust Plaza, Jersey City, NJ 07302
According to the city, all five data centers are located inside existing downtown office buildings shared with other commercial tenants. None of them received Planning Board approval; instead, they were all permitted administratively for tenant use.
If passed, Ordinance 26-057 would not affect existing data centers. Instead, it would remove data centers from the list of permitted principal uses within the city’s Industrial District moving forward. The proposal would also eliminate the associated parking requirements for data centers and add a formal definition of “data center” to the municipal code, clarifying that data centers and cyber hotels are not considered warehousing uses.
What’s Next?
The proposed ordinance has now cleared its first reading, but it is not yet law. Before taking effect, Ordinance 26-057 must receive a second reading and final approval from the Jersey City Council at its scheduled August 19 meeting.
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