New Brunswick rejects data center plan following public backlash

A controversial proposal for a data center in New Brunswick collapsed less than two weeks after becoming public as the City Council voted unanimously Wednesday, Feb. 18, to block construction of the 27,000-square-foot facility amid growing opposition in the community.

The swift reversal reflects a growing clash across New Jersey as towns grapple with the rising energy demands of artificial intelligence data centers — projects that promise economic development but also raise concerns about utility costs, environmental impacts, tax breaks for corporations, and changes to local neighborhoods.

At the packed public meeting on Wednesday night, New Brunswick Council members decided to amend the redevelopment plan for 100 Jersey Avenue to remove data centers as a permitted use and restore plans for a public park. They then heard public comment from residents, students, activists, and civil rights leaders before voting on the revised plan.

“I’d like to thank the council for deciding to scrap what many people did not want in their neighborhoods,” said Bruce Morgan, president of the New Brunswick Area Branch NAACP. “We appreciate you listening to the folks.”

A local fight tied to statewide pressures

The proposal arrived at a moment when New Jersey is confronting surging electricity demand driven partly by large data facilities powering cloud computing and artificial intelligence.

Data centers consume enormous amounts of electricity and water to cool servers. While the New Brunswick project was smaller than many facilities proposed elsewhere in the state, residents said even a modest installation raised broader concerns about cumulative impacts.

Several speakers linked the issue directly to rising electric bills that have become a central political issue statewide.

Lauren, a Rutgers University student, told council members the proposed site near residential neighborhoods and campus raised environmental justice concerns, arguing such infrastructure often lands in communities with fewer resources to absorb its impacts.

Dan Blanco, a city resident and environmental science doctoral student, called the vote “siding on the right side of history,” urging officials to work more closely with residents and university researchers when planning future redevelopment.

City officials said the data center had not been finalized and would have required approval from Public Service Electric & Gas demonstrating system need.

Redevelopment tensions remain

The Jersey-Sandford redevelopment area spans more than 22 acres of long-vacant industrial land the city has sought for years to revive. Plans moving forward include roughly 600 apartments, small commercial warehouse spaces aimed at startups, and now a park.

Some residents urged the council to increase affordable housing requirements from 10% to 20%, arguing the city’s economic realities demand more affordable units.

Anne Norris, a longtime resident, said many local families live below the poverty line. “Given the economic status of the people who live in New Brunswick, I don’t think 10% is really sufficient,” she said.

City officials responded that New Brunswick already exceeds its state affordable housing obligations, citing more than 3,750 affordable or subsidized units — about 22% of the city’s housing stock — with additional projects expected to push that share above 25%.

Transparency questions surface

The speed of the controversy also exposed frustration with how redevelopment decisions are communicated to the public. Several speakers said they learned about the data center only days before the vote and criticized what they described as a rushed process.

Residents also questioned why meetings lacked sufficient space and audio access for attendees, with dozens of people waiting outside City Hall and chanting during the hearing.

The council said the crowd size required limiting entry to comply with the fire code capacity.

A preview of future conflicts

The New Brunswick vote reflects a broader tension emerging across New Jersey: municipalities eager for redevelopment revenue are increasingly encountering resistance as data centers — once viewed as low-impact economic development — become associated with rising energy demand and infrastructure strain.

For many residents, Wednesday’s outcome represented more than a single land-use decision.

Kevin Contigo, a youth soccer coach who grew up in the city, urged officials to ensure redevelopment reflects community priorities.

“Thank you for the park,” he told council members. “But make sure it’s for us — the kids need it more than anything.”