Two major proposals were recently stopped by local officials concerned about soaring electricity demand, environmental impacts and rising utility costs for residents.
On May 19, Millville voted to ban future data center development outright, killing what would have become the largest proposed data center campus in New Jersey history.
The decision follows another major setback for the industry earlier this spring, when officials in Gloucester County rejected a separate proposal for a large data center project after intense public opposition.
Together, the decisions signal a rapidly shifting attitude toward the explosive growth of artificial intelligence infrastructure in New Jersey.
The Millville ordinance halted a proposed 2.6 million-square-foot campus that developers planned to build on former industrial land. At full buildout, the facility was expected to require roughly 1.4 gigawatts of electricity. This is an enormous amount of power that critics warned could strain the regional electric grid and increase energy costs for consumers.
Climate Revolution Action Network, or CRAN, a Gen Z-led environmental advocacy group, has been pushing for this win, and celebrates a hard-fought victory. The organization mobilized a lengthy grassroots campaign to unite locals of all backgrounds against the development.
CRAN says that this vote comes amid mounting concerns throughout the nation over the rapid expansion of AI-driven data centers, which require massive amounts of electricity and water to operate around the clock.
The young advocates led civic trainings, provided education, and invited community members to show up and speak out at local hearings.
The back-to-back defeats suggest that resistance to the projects is no longer isolated. Across the region, residents are increasingly worried that the rise of AI infrastructure could translate into higher electric bills for ordinary households.
Data centers supporting artificial intelligence systems consume dramatically more power than traditional server facilities because they rely on thousands of energy-intensive computer processors operating continuously. Utility experts nationwide have warned that rapidly increasing demand from AI facilities could require expensive upgrades to transmission systems, substations and generating capacity.
New Jersey lawmakers have already begun addressing the issue. State legislators advanced proposals earlier this year intended to ensure that large data centers pay for their own infrastructure upgrades rather than shifting those costs onto residential ratepayers through higher monthly electric bills.
South Jersey communities face unique concerns because the region’s electric grid is already under seasonal pressure from tourism and population surges during the summer months. Critics fear additional industrial-scale energy demand could further stress the system while contributing to future rate increases.
Environmental advocates have also sounded alarms about emissions and water usage tied to the facilities. Data centers also require extensive cooling systems to prevent servers from overheating, resulting in heavy water consumption and concerns about long-term sustainability.
A Stockton University poll released earlier this month concluded that a majority of New Jersey voters are concerned about the growth of artificial intelligence data centers. Almost sixty percent of voters are in favor of banning them from their communities.
One of the region’s most controversial proposed projects — a massive AI-focused campus planned for Vineland — has faced criticism over plans involving natural gas-powered energy generation and liquified natural gas infrastructure. Opponents argue that projects of that scale could undermine New Jersey’s climate goals while increasing local air pollution and industrial activity in rural and suburban communities.
In partnership with CRAN, over 60 environmental organizations recently urged New Jersey officials to pause approvals for new data centers until statewide regulations and environmental standards can be developed. Advocates say municipalities are being asked to make decisions on projects with enormous energy demands before comprehensive oversight is in place.
Supporters of the industry argue that data centers are essential infrastructure for the modern economy. Artificial intelligence, cloud computing, streaming platforms and online services all depend on massive server facilities to process and store information. Developers also tout construction jobs and future tax revenue associated with the projects.
But critics counter that once operational, many facilities employ relatively few permanent workers compared to the amount of land, energy and infrastructure they consume.
The debate has become increasingly urgent as AI companies race to expand nationwide. Across the country, local governments are grappling with how to balance economic development with concerns about sustainability, power reliability and neighborhood impacts.
In South Jersey, the recent decisions in Millville and Gloucester County could encourage other municipalities to take a closer look at future proposals before approving them.
For many residents, the question is no longer whether data centers are coming to South Jersey, but how much growth communities are willing to accept before deciding the costs outweigh the benefits.
