Residents Continue Voicing Frustrations Over Planned Data Center In Union County

KENILWORTH, NJ — Emotional testimony filled a packed Borough Council meeting in Union County on May 19 as residents and officials clashed over a proposed $1.8 billion artificial intelligence data center planned for the former Merck property.

The project has become a major point of discussion in the borough following Merck’s departure in 2023, which left an estimated $9.7 million annual gap in property tax revenue, about 28% of Kenilworth’s municipal budget.

Supporters at the meeting said the development could help restore that lost revenue and bring new economic activity back to the site.

“This project gives Kenilworth the chance to recover major tax base, bring new jobs back to the site, and put an important property back into productive use,” said Tim McConnell, a union business agent representing about 1,500 families. He said union workers are already on the site and noted plans for a closed-loop cooling system designed to reduce water use.

But many residents expressed concern about environmental impacts and quality-of-life issues, including energy demand, water usage, noise, and pollution.

“AI data centers are taking our jobs, raising our energy bills, lowering our home value, polluting our air and water, and destroying the minds of our youth,” said resident and teacher Courtney Spadaro. “Why are we doing this? We don’t want this private equity backed company operating on our soil.”

Other residents pointed to recent activity at the site as a reason for concern. Emma Newburger described an incident she said included a loud explosion and heavy smoke that startled nearby homes.

“Pitch black smoke… the sound was so loud, residents came out of their homes,” she said.

Victor Gomez called for independent review of the project and questioned assurances from developers, saying similar facilities in other states have strained infrastructure.

“You have brought foxes to speak to a room full of chickens,” he said.

Supporters focused on taxes and long-term affordability.

“I got two words: tax rates,” said resident Dan Bukruit, who worked on the Merck site in the 1980s. “My taxes have been going up… I want to see them stabilize.”

Councilman William Mauro defended the proposal, pointing to data center development in other states and saying concerns about water usage have been overstated based on national figures and industry comparisons.

Councilwoman Toni Giordano Picerno also addressed criticism of the governing body, emphasizing that council members are not involved in outside financial arrangements tied to the project and receive limited compensation for their service. She also clarified the mayor’s role in voting matters.

Mayor Linda Karlovitch defended her attendance record after criticism during the meeting, saying she has not missed a council meeting.

By the end of the meeting, residents and officials remained divided between concerns about environmental and quality-of-life impacts and arguments centered on tax revenue and redevelopment of the former industrial site.