Hamilton Township Puts Brakes on Data Centers as Officials Study Potential Impact

MAYS LANDING — As communities across the region wrestle with the rapid expansion of massive data centers needed to power artificial intelligence and other technology, Hamilton Township is hitting the brakes.

Hamilton Township Committeewoman Dr. Thelma Witherspoon says the township has imposed a moratorium on data-center development while officials study whether — and under what conditions — the facilities should be permitted.

“Everyone was concerned about data centers, which we've done a moratorium on,” Witherspoon said Thursday during an appearance on Off The Press on WOND with guest host Michael Suleiman.

Witherspoon acknowledged the opposition township officials have heard from residents.

“We know a lot of people don't want it, but we had to do a study,” she said.

For now, she said, development is effectively frozen.

“Right now, they can't come in and do anything because there's a moratorium set,” Witherspoon said.

Residents Raised Concerns This Spring

The issue erupted publicly during a lengthy Hamilton Township Committee discussion May 18.

Residents raised concerns about the enormous amounts of electricity and water that can be consumed by large data centers, along with potential effects on utility rates, infrastructure, the environment and surrounding neighborhoods.

Township officials acknowledged during that meeting that Hamilton's large land area could potentially make the community attractive to data-center developers.

Importantly, officials also said at the time that there were no data-center applications pending before the township.

The concern was instead about establishing rules before an application arrived.

Township officials discussed using a temporary moratorium to give planners and other professionals time to investigate utility requirements, infrastructure demands, environmental effects and potential land-use restrictions.

The debate left open several possibilities: Hamilton could ultimately prohibit data centers, permit them with significant restrictions or establish standards determining where and how large facilities could operate.

Why Data Centers Are Becoming a Local Issue

Data centers house enormous collections of computer servers and other equipment used to store, process and transmit digital information.

Their importance has increased dramatically with the growth of cloud computing and artificial intelligence, which require enormous computing capacity.

But their expansion has also produced increasingly contentious land-use battles.

Unlike a traditional warehouse, a large data center can require enormous and continuous supplies of electricity. Depending on its cooling system, water consumption can also become an issue.

Those concerns were central to Hamilton's May discussion.

Residents asked officials to examine possible effects on electricity costs and infrastructure and called for independent environmental analysis before allowing major facilities into the township.

Township Wants Answers Before Applications Arrive

The Hamilton discussion is notable because officials are attempting to establish a policy before being forced to respond to a specific proposal.

During the May meeting, township representatives said a temporary freeze would allow them to perform due diligence and return with recommendations.

Officials discussed requiring potential projects to undergo utility-impact and infrastructure assessments and potentially limiting the size or locations of data centers if they are ultimately permitted.

Witherspoon said Thursday that the study process is now underway.

“We had to do a study to see how data centers would or would not be able to come to Hamilton Township,” she said.

Development Debate Comes as Amazon Moves Forward

The data-center debate is occurring at an interesting time for Hamilton Township.

Officials are simultaneously moving forward with Amazon's massive redevelopment of the former Atlantic City Race Course into a fulfillment center expected to create 750 permanent jobs.

The two situations illustrate the decisions facing a sprawling municipality with large tracts of developable land.

Hamilton officials have embraced the Amazon project after negotiating a PILOT and community partnership agreement that they say will produce jobs, municipal revenue and other benefits.

With data centers, however, officials are taking a more cautious approach.

Witherspoon said residents have made their concerns clear.

For now, Hamilton Township's answer to large-scale data-center development is essentially: not until the township knows more.