Summit Adjusts Data Center Ban Rules

SUMMIT, NJ — Summit officials are moving ahead with updates to the city’s rules governing artificial intelligence data centers, following direction from the Common Council during its June 16 meeting and a recent city social media update outlining proposed changes.

The update comes on the heels of the city’s recent adoption of an ordinance aimed at prohibiting AI data centers within Summit limits, including on major redevelopment sites such as the former Bristol Myers Squibb campus.

That ordinance established a framework defining what qualifies as an AI data center, using factors such as primary use, infrastructure demands, and a key power threshold of 20 megawatts, along with considerations tied to municipal water usage.

Under that approach, any facility meeting those criteria would fall under the city’s restriction on AI data center development.

However, according to the city’s update, council members have now directed staff and professional consultants to begin incorporating proposed modifications into a revised version of the ordinance, which is expected to be introduced on July 7.

One of the most significant potential changes is the removal of the 20-megawatt threshold that currently helps determine when a facility is automatically classified under the ban.

The original ordinance drew discussion during earlier meetings, with some residents and officials questioning whether a strict power cutoff fully captures how newer, smaller-scale data center projects are being designed and operated.

Councilman Jamel Boyer previously raised concerns that limiting regulations to a specific threshold could leave gaps in enforcement as technology evolves.

“The threshold is set at exactly the top of the category that is growing the fastest, and we would be banning the rare giant and leaving the door open for the common kind,” Boyer said.

Other council members supported moving forward with the ordinance at the time, noting that the policy could be refined over time as more information becomes available.

“We cannot allow perfection to be the enemy of the good,” Councilmember Chantal Landman said. “We can and we will improve upon this ordinance.”

In addition to the proposed removal of the megawatt threshold, city officials said further review will continue over the coming months on several other aspects of the regulations.

Those include potential updates to setback requirements near residential areas, noise limitations, temporary construction structure rules, and ongoing compliance standards for any future applications.

City officials said the revised language will be incorporated into an updated ordinance ahead of its introduction on July 7, as Summit continues adjusting its policy approach to AI data center development.