New Jersey Data Center Draws Fire Over Lack of Public Notice
A $1.8 billion artificial intelligence data center under construction in Kenilworth is facing resident backlash over what locals say was inadequate public disclosure before work began.
The nearly 400,000-square-foot facility, built on a former Merck pharmaceutical site, is expected to open in early 2027. CoreWeave, a Livingston-based cloud computing company, purchased the property for $322 million and began construction in September.
The project sits in a borough of 8,500 people spanning roughly 2 square miles, less than 20 miles from New York City. Most residents only learned of it in recent weeks through social media and community forums.
Jordan Panno, a 22-year-old Union County resident living minutes from the site, started a petition calling for construction to stop. The petition had gathered over 4,000 signatures by Tuesday.
"This was not public information - not to Union County residents, and not even to Kenilworth residents who live within 300 yards of the facility," Panno said.
The Kenilworth Planning Board unanimously approved the project in May 2025. No members of the public spoke before the vote, according to meeting minutes.
What the Data Center Requires
AI data centers demand substantial infrastructure. The Kenilworth facility could require up to 250 megawatts of power - equivalent to the electricity used by roughly 200,000 homes.
The site will feature dozens of generators and cooling units operating 24/7. CoreWeave says it will use a closed-loop cooling system that does not continuously draw from local water sources.
The company projects the facility will create 143 permanent jobs paying above the county's median salary.
State Incentives and Backing
New Jersey approved CoreWeave for $250 million in tax credits in November 2024 through a state program designed to attract AI companies and data centers. The company must maintain operations in the state for at least 10 years as part of the deal.
CoreWeave operates more than 30 data centers across North America and Europe. Its major customers include Microsoft, Meta, and OpenAI.
Transparency Concerns Spreading
Similar transparency issues are emerging elsewhere in New Jersey. In Cumberland County, residents near a 2.6 million-square-foot data center in Vineland say they were unaware of the project until construction was underway.
Other municipalities are taking preventive action. Millville, Logan Township, and Harrison Township are introducing restrictions or outright bans on data centers before proposals arrive.
State lawmakers are drafting legislation to increase transparency. Proposed bills would require data center operators to report energy and water consumption, and place additional limits on how facilities are approved and regulated.
Local Officials Defend the Project
Kenilworth Mayor Linda Karlovitch said the data center will replace tax revenue lost when Merck departed. "When Merck left, it left a real gap in jobs and tax revenue," she wrote on Facebook. "CoreWeave is filling that gap with something built for the future."
She cited a noise study showing the facility will operate below state limits and stressed that the project will not strain the power grid.
CoreWeave said in a statement that it views data centers as "investments in the communities that host them" and designed the facility to be "a responsible neighbor."
Resident Concerns Remain
Nicholas, a Kenilworth resident of over 40 years living a quarter mile from the site, expressed skepticism about the project's scale for such a small borough.
"The whole town is about a mile wide," he said. "That's a very big decision that's going to affect people for decades."
For real estate and construction professionals monitoring infrastructure developments, this project illustrates how large-scale AI facilities are reshaping community planning and regulatory frameworks. Learn more about AI for Real Estate & Construction to understand how this trend may affect your sector.
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