New Jersey town moves to ban data centers, but Bell Works' bid came first

Holmdel Township has approved a municipal ban on data centers, joining a broader wave of local resistance in New Jersey over the facilities' water needs, electricity demand, and neighborhood effects.

Here's what to know

According to NJ.com, Committee members began the process in late July and gave final approval for the new rules in August. The ordinance both defines what the township considers a data center and prohibits that use under local development rules.

Despite the new ban, a major data center built by Inspired by Somerset Development may still come to the community, as its project was filed before the ban took effect. The company's plan would see the 472-acre former Bell Labs property, home to Bell Works, turned into a data center.

That timing could be decisive. NJ.com reported that at the Aug. 11 meeting, township attorney Michael Collins said a complete application is generally reviewed under the zoning rules in place when it is filed, meaning Bell Works could still be considered under the pre-ban framework.

At both meetings, residents warned that a large data center could consume major local resources and change the township's feel. NJ.com reported that some large-scale data centers can use 3 million to 5 million gallons of water per day and consume up to 300 megawatts of electricity, raising concerns about noise, lighting, and property values.

Questions also arose about Bell Works in particular. Township Committee member Greg Buontempo, according to NJ.com, sought guidance on how the ordinance would affect that site, but Collins said the redevelopment agreement made the legal picture more complicated.

Questions about traffic, bright night lighting, equipment noise, and added strain on water and electric systems can quickly fuel opposition to data centers, particularly when community members feel projects are moving ahead before the public fully understands them.

That frustration was reflected in comments from Better Holmdel member Kin Gee, who said, as quoted by NJ.com, "I'm sure in all local governments, we residents…like to not be surprised." Gee added, "We were there to cheer the banning of a data center and it was announced, 'Guess what, guys? The data center is coming right to one of the most successful redevelopments of all of Monmouth County and maybe the state.'"

Opponents of blanket bans argue that they can block investment, jobs, and digital infrastructure that businesses increasingly depend on. That tension has fueled similar debates elsewhere, as communities seek protections while developers and some officials warn against shutting the door entirely.

Holmdel's main policy response is the ordinance, which passed unanimously on both readings. Even if the Bell Works application is exempt because it arrived first, the measure could still prevent future data center proposals elsewhere in town.

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