Jersey City Council Bans Data Centers From Industrial Zones

The Jersey City Council voted unanimously on Wednesday, August 19, 2026, to bar new data centers from the city’s industrial zones, adding Jersey City to a growing list of New Jersey municipalities that have moved to keep the facilities out.

The measure, Ordinance 26-057, amends the city’s Land Development Ordinance to remove “cyber hotels” and data centers as a permitted principal use in the Industrial District. The change carries out a recommendation from the city’s Master Plan, which as far back as 2000 called for careful review of data center development and, in its 2020 update, recommended eliminating the use from industrial zones. The Planning Board recommended the amendment in a 6-0 vote on June 30, and the council passed it on first reading July 15.

The ordinance blocks new standalone data centers from industrial land where they would otherwise be built. City planning documents note there are already about five data centers in Jersey City, all located downtown inside existing office buildings, which are not the target of the change.

Officials backing the ban said industrial land should instead go to employers who hire local workers, arguing that data centers drive up utility bills and consume large amounts of electricity and water while creating few permanent jobs.

“Data centers eat up power, drive up utility bills for every ratepayer in this state, and employ almost nobody,” said Mayor James Solomon. “Our industrial land should be put to work for the people who live here by creating real jobs with real wages.”

Local officials worked with grassroots activists from the Climate Revolution Action Network on the ban.

“Data centers are a bad deal for the neighborhoods around them. They drive up everyone’s electric bills and barely hire anyone once the construction is done,” said Ben Dziobek, Executive Director of the organization.

Several council members called for a statewide moratorium on data center construction, arguing local governments should not have to fight the projects one at a time.

“Working families shouldn’t be stuck with higher utility bills so private equity can profit from massive server farms,” said Ward D Councilman Jake Ephros. “We need a statewide moratorium to slow these projects down and make sure communities come first.”

Ward B Councilman Joel Brooks said he understood the concerns of labor partners and was committed to making sure union labor is not pitted against community and environmental concerns.

The vote adds Jersey City to a list of New Jersey towns that have moved to keep data centers out, including Bayonne.