New Brunswick Blocks Data Center as Energy Costs and Power Demand Fuel Central Jersey Debate
City Council unanimously amends the Jersey-Sandford redevelopment plan, while similar data center proposals raise questions about electricity demand and rising utility bills across Central Jersey.
Residents gather outside New Brunswick City Hall following the unanimous vote to remove data centers from the redevelopment plan. (Credit: Climate Revolution NJ via Instagram)
Chris Howell | February 19, 2026
The chants outside New Brunswick City Hall could be heard inside the council chamber Tuesday night as residents packed the building to oppose a proposed data center at the Jersey-Sandford redevelopment site.
So many people showed up that not everyone could fit inside. Those gathered outdoors continued chanting as council members debated an amendment to the Jersey-Sandford Redevelopment Plan that would have permitted data centers as a principal use on the property. Speaker after speaker urged the council to reject the proposal, raising concerns about electricity consumption, environmental impact, and the direction of development in the neighborhood.
By the end of the meeting, the City Council voted unanimously to amend the redevelopment plan to remove data centers as a permitted use and reinstate a park requirement for the site. The revised redevelopment plan was then adopted without the data center language.
“This is what it looks like when people stand up,” said Ben Dziobek to the jubilant crowd outside city hall. Dziobek is the executive director and founder of Climate Revolution Action Network, which organized the effort against the data center.
The episode is one of several recent flashpoints across the region as municipalities weigh the economic potential of large technology facilities against concerns about electricity demand, environmental impact, and rising utility bills.
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In South Brunswick, a proposed 340,000-square-foot data center on the former Princeton Nurseries property has been tied up in legal limbo amid a reported lawsuit over the land. The same developer behind that proposal is also pursuing a solar canopy project at the site, which township officials have publicly supported as part of their renewable energy goals.
According to a township press release, the canopy would generate approximately 1,800 megawatt-hours of electricity annually, enough to power roughly 168 homes for an entire year. While that contribution supports local sustainability targets, it is modest compared with the continuous energy demands of a large data center operating 24 hours a day.
In Edison, infrastructure linked to high-energy facilities has also come before local officials. The Planning Board approved an accessory battery storage structure at the Iron Mountain data center in November. Iron Mountain’s Edison facility spans approximately 83,000 square feet, according to the company’s website. A single battery storage addition represents an incremental improvement to reliability rather than a change in the facility’s overall energy footprint.
More recently, public records show PSE&G sought approval for two new electrical substations in Edison, projects that reflect broader changes in regional electricity demand. While renewable installations and storage systems are expanding, large data centers can draw power loads comparable to thousands of homes, creating pressure for additional grid infrastructure.
A 2025 map of U.S. data center infrastructure, transmission networks, and fiber lines illustrating the concentration of facilities in major metropolitan regions. (Source: US Department of Energy)
Electricity costs were a central issue in last year’s gubernatorial race. Gov. Mikie Sherrill pledged to address rising electric bills and signed an executive order early in her term aimed at stabilizing energy prices. At the same time, state regulators and consumer advocates have been scrutinizing the rapid growth of large electricity users — particularly data centers — and their role in reshaping the regional energy market.
New Jersey is part of a regional power system that spans 13 states, stretching from Illinois to the Mid-Atlantic. Each year, grid planners estimate how much electricity will be needed in the future and secure enough supply to meet that demand. When projected demand increases sharply, the cost of reserving that future electricity tends to rise as well, costs that ultimately filter into customer bills.
Data centers operate around the clock and require substantial electricity to power servers and cooling systems. For nearly two decades, peak electricity demand in New Jersey remained relatively stable. Recent forecasts, however, show sustained growth in the years ahead. Energy planners attribute the shift in part to the expansion of large, continuous electricity users.
In an August filing to the New Jersey Board of Public Utilities, the state’s Division of Rate Counsel cited independent market analysis indicating that most projected growth in regional electricity demand is tied to data center expansion. The filing also referenced a sharp increase in total costs in a recent regional electricity auction, which Rate Counsel said was largely driven by increased demand from large users. The agency argued that companies creating new electricity demand should bear the cost of building the infrastructure needed to serve it, rather than shifting financial risk to residential customers.
That tension is playing out locally in different ways.
The New Brunswick vote did not halt redevelopment at Jersey-Sandford. The plan still permits a mix of residential and commercial uses. But by removing data centers from the list of allowed uses, the council signaled that, at least in this case, community concerns about energy and environmental impacts outweighed the appeal of adding a high-capacity facility.
Across Central Jersey, similar questions continue to surface. How much electricity can the grid absorb? Who should pay for infrastructure upgrades? And how do we balance economic development with affordability and sustainability?
For now, New Brunswick’s decision stands as one example of a growing regional debate that extends far beyond a single property line.
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