Jersey City officials introduced an ordinance that would ban data centers as the primary principal use of industrial property, a move aimed at preserving the city’s remaining industrial land for uses officials say will create more local jobs.
Mayor James Solomon and the City Council introduced Ordinance 26-057 on July 15. The measure would amend the city’s Land Development Ordinance by removing data centers from the list of principal permitted uses in the Industrial District.
The ordinance also would remove the associated parking standard and add a definition of “data center” to the municipal code, clarifying that a data center or cyber hotel is not considered warehousing.
City officials said demand for data center capacity has been rising across the region, putting pressure on industrial land in Jersey City. They argued that data centers consume large amounts of electricity and water, require significant space and create relatively few permanent jobs compared with other industrial uses.
“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.”
The proposed ban would not affect existing data centers in the city. According to the release, Jersey City currently has approximately five data centers, all located downtown inside existing office buildings shared with other commercial tenants. The city said those facilities were permitted administratively as tenant uses and did not receive Planning Board approval.
Ward D Councilmember Jake Ephros said the ordinance is intended to protect residents from added pressure on energy costs.
“When a data center plugs into the grid, billionaire companies reap the profits and Jersey City families get the bill,” Ephros said. “Our residents are already stretched thin by rising utility costs.”
Supporters of the ordinance, including local elected officials and advocacy groups, said the city should prioritize industrial uses that provide jobs and avoid straining the electric grid and water supplies.
Climate Revolution Action Network, Hudson County DSA and Food & Water Watch North Jersey were among the groups cited in support of the measure.
The ordinance received its first reading July 15. A final vote is scheduled for the Aug. 19 meeting of the Jersey City Council.