New Jersey Residents Protested Data Center Expansion
Local opposition surfaced in August 2026 as energy and water use from data centers prompted new grid protocols.
Updated on Oct. 13, 2026 in Data Centers
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In August 2026, residents in Kenilworth protested the construction of new data center facilities. The pushback reflects growing concerns over the infrastructure's resource consumption as the state currently hosts more than 80 operational or planned data centers.
Why it matters
Rising demand for generative AI platforms has accelerated the construction of large-scale digital infrastructure, putting strain on local resources like water and the electrical grid. This has prompted state authorities and grid operators to reassess usage regulations.
Data centers consumed 17 billion gallons of water in 2023, with usage projected to climb as high as 33 billion gallons by 2028. Additionally, electricity demand from data centers rose 17 percent in 2025.
The players
CoreWeave
A cloud infrastructure provider specializing in high-performance GPU resources for AI and machine learning workloads.
PJM Interconnection
A regional transmission organization that manages the high-voltage electricity grid for 67 million people across 13 states.
Data One
A data center operator currently developing a 2.4 million square foot facility in Vineland.
The details
Data centers utilize high-density servers and water-based cooling systems—a method that circulates water to dissipate heat generated by compute hardware—to support digital infrastructure demands. On-site battery storage systems are increasingly deployed to manage the substantial energy load shifts. To maintain stability, PJM Interconnection, the regional transmission organization, now requires facilities without independent power supplies to shut down before public service during grid outages.
Timeline
In 2023, data centers consumed 17 billion gallons of water.
Data center electricity demand increased by 17 percent in 2025.
Kenilworth residents protested data center construction in August 2026.
The Tech Race
This localized conflict follows the broader national trajectory established by the 2024 Federal Department of Energy report on data center water usage. It marks a shift from passive infrastructure planning to active community and regulatory intervention.
Residents in proximity to proposed sites may face increased noise and light pollution alongside potential competition for local water and power resources. Future regulatory updates from PJM Interconnection may prioritize public power availability over data center operations during peak load periods.
The takeaway
The tension between AI infrastructure growth and community resource availability is becoming a defining feature of New Jersey municipal planning. Watch for updated PJM Interconnection grid reliability reports to see how data center shutdowns impact regional power stability.
Further reading
For more on how facility scaling impacts utility grids, explore our coverage of Data Centers.
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Do you trust your local government to effectively regulate data center projects in your community?
