North Ward Councilman Anibal Ramos Jr. is leading an effort to ensure that the rapid growth of data-centers does not come at the expense of Newark residents.

The Municipal Council today approved a resolution sponsored by Ramos expressing support for a temporary moratorium on the development of data centers throughout Newark to give the city time to study the impact of these facilities and develop appropriate zoning and infrastructure standards.

The resolution notes that Newark has experienced an increase in inquiries and proposals for large-scale data centers. The resolution also raises concerns about the substantial and sustained electricity demands of these facilities, their potential impact on the regional power grid and electricity costs in addition to their significant needs for water for cooling.

Ramos said the goal is not to prevent technological development, but to make sure Newark has the appropriate standards in place before allowing potentially major new demands on the city's infrastructure.

“Newark should welcome innovation and new investment, but we have to make sure that growth works for our residents,” Ramos said. “Large-scale data centers can have a significant impact on our electric grid, water supply, infrastructure and surrounding neighborhoods. Taking a step back and giving the city time to establish the right rules is simply responsible planning. We need to make sure that Newark residents are protected from higher utility costs and that developers are contributing appropriately to the infrastructure their projects require.”

The resolution calls for the Baraka administration to develop requirements for prospective data-center applicants that ensure adequate investment in utility infrastructure and protect local residents against further increases in utility costs.

To date, no data center projects have been presented to the Newark City Council for consideration nor proposed guidelines around the potential development of these projects.

It also calls for prospective data-center developers to utilize closed-loop chillers and other water-efficient cooling technology to maximize water efficiency and minimize environmental impacts.

Ramos said Newark should not allow developers to move faster than the city's ability to understand and manage the consequences of these projects.

“Before we open the door to large-scale development, Newark needs rules that protect our residents, our neighborhoods and our taxpayers,” Ramos said.

The Council's resolution also points to the experience of other New Jersey municipalities that have adopted temporary moratoriums on data-center development while they study appropriate regulations.

Ramos said the moratorium would give Newark the opportunity to determine what standards are necessary before potentially transformative projects move forward.

“This is about protecting Newark's future,” Ramos said. “We should be asking the hard questions now, not after the projects are built. If we do this right, we can encourage investment while making sure that our residents see the benefits and are not left with higher costs, strained infrastructure or environmental consequences.”