Newark City Council Takes Stance On Data Centers, Passes Resolution

NEWARK, NJ — The Newark City Council recently approved a resolution that seeks to temporarily put the brakes on AI data centers.

Earlier this month, the council voted in favor of a resolution that supports a 12-month moratorium on the development or expansion of data centers in Newark.

The resolution doesn’t make any actual changes to city code, which would have to be approved through a local ordinance.

According to the resolution, there should be requirements for prospective applicants that “ensure protections for local residents against further increases in utility costs,” including adequate infrastructure investment.

Other requirements should include closed-loop chillers and other water-efficient cooling technology, the resolution states.

“Taking a step back and giving the city time to establish the right rules is simply responsible planning,” said North Ward Councilman Anibal Ramos Jr., who sponsored the resolution.

“We need to make sure that Newark residents are protected from higher utility costs and that developers are contributing appropriately to the infrastructure their projects require,” Ramos said.

The council also approved a referral to the city planning board regarding the implementation of the proposed, one-year moratorium.

The full text of the resolution passed at the Sept. 9, 2026 council meeting follows below:

WHEREAS, the City of Newark (“the City”) seeks to promote the health, safety and general welfare of those who live, work, and do business within the City, and to guide the orderly development of land in a manner consistent with the City's Master Plan; and

WHEREAS, the City has experienced a marked increase in inquiries and proposals for the development of large-scale Data Centers, a use currently permitted in the City's Industrial, Airport, and Port Area Districts pursuant to Table 4-3 (41:4-3) of Title 41 of the Revised General Ordinances; and

WHEREAS, Data Centers of the scale increasingly proposed regionally and nationally can require substantial and sustained electric power loads, placing significant new demand on the regional electric grid and related infrastructure, with attendant impacts on electricity costs, reliability, and emissions; and

WHEREAS, Data Centers of this scale may also require substantial water for cooling, generate increased heavy-vehicle and backup-generator noise, and otherwise affect surrounding land uses in ways that warrant careful zoning and land use analysis before further such development proceeds; and

WHEREAS, the current definition of “DATA CENTER” set forth in 41:2-2 of Title 41 does not distinguish large, power-intensive data center facilities from smaller collocated server rooms, nor does it establish an objective threshold for identifying uses that warrant heightened land use review; and

WHEREAS, the Municipal Council has observed that large Data Centers approved for construction around the country are frequently in excess of one hundred thousand (100,000) square feet, underscoring the scale of utility, water, and infrastructure demand that such facilities may place on a host community; and

WHEREAS, other New Jersey municipalities, including the Borough of Sayreville, have adopted temporary moratoria on data center development in order to allow time for such study, and courts of this State have recognized the authority of a municipality to adopt a reasonable, time-limited moratorium on development where necessary to allow for study and revision of its zoning and land use regulations; and

WHEREAS, the Municipal Council wishes to place on the record its support, as a matter of policy, for a temporary moratorium on data center development while appropriate zoning standards are studied and developed;

NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, COUNTY OF ESSEX, STATE OF NEW JERSEY, THAT:

1. The Municipal Council hereby expresses its support, as a matter of policy, for a temporary, twelve (12) month moratorium on the development, establishment, expansion, enlargement, or conversion of Data Center uses, as that term is or may be defined in 41:2-2 of Title 41, in any zoning district throughout the City of Newark.

2. The Municipal Council encourages the moratorium until the administration prepares requirements for prospective applicants that ensure adequate investment in utility infrastructure to ensure protections for local residents against further increases in utility costs.

3. The Municipal Council hereby requires that prospective developers of Data Centers utilize closed-loop chillers and other water-efficient cooling technology, so as to maximize water use efficiency and minimize negative environmental impacts.

4. This Resolution constitutes an expression of the sense of the Municipal Council only, does not itself amend Title 41 or any other provision of the Revised General Ordinances, and does not prohibit, condition, or otherwise affect any pending or future application for development, site plan approval, subdivision approval, variance, zoning permit, or building permit. No moratorium on data center development shall take legal effect unless and until adopted by ordinance in accordance with N.J.S.A. 40:69A-181 et seq. and N.J.S.A. 40:55D-1 et seq.

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