Council moves to remove data centers as a principal use in industrial districts

The city’s planning director told the council on July 13 that the planning department will introduce an ordinance (first reading) to remove data centers — historically labeled in code as "cyber hotels" — as a principal permitted use in industrial districts.

Director Marione said the change responds to national trends where standalone server-farm data centers have become large, single-use facilities in industrial areas. "This would prohibit something like that happening in Jersey City within our industrial district," she said, while noting that data centers co-located inside office buildings (for internal networks or single floors of servers) would remain permissible.

Council members asked about the process and timeline; Marione said the amendment would proceed through first reading and a public hearing and that existing co-located facilities downtown would not be forced to change. The zoning change would not automatically require any existing facility to shut down, she said; a developer could still pursue a variance if they sought to build a principal data center, but the ordinance would move the master-plan intention away from permitting standalone data centers in industrial districts.

The planning office indicated the change is intended to preserve industrial land for more diverse or mixed uses and to avoid concentrating large energy- and infrastructure‑intensive facilities in neighborhoods where the city has planned different industrial uses.