A massive legal battle is playing out in Montgomery Township as developers clash with local officials over the future of a sprawling 257-acre site. E. Kahn Development (EKD) filed a lawsuit in Superior Court on July 31, challenging a town ordinance that prohibits data centers. This legal action follows the developer's assertion that the former Johnson & Johnson campus represents an ideal location for an artificial intelligence facility due to its existing electrical infrastructure and significant distance from residential housing.
The township committee unanimously adopted the ban in June, citing concerns over the high electricity and water requirements of modern data centers, as well as potential noise from cooling systems. Officials stated the ban is necessary to protect the character of local residential neighborhoods. However, EKD argues that these concerns are manageable through standard regulations rather than an outright prohibition on the land use.
In the court filing, attorneys for EKD claim the township's decision rests on public hysteria rather than sound land-use planning. The developer is seeking over $300 million in damages, arguing the ordinance reduces the property's value and restricts its ability to market the site for its highest and best use. This dispute is part of a larger trend across New Jersey, where municipalities are increasingly adopting bans in response to vocal resident opposition.
This specific property has a history of development friction. After being removed from the township's affordable-housing plan due to environmental and traffic concerns from neighbors, the site has remained a focal point of debate. The pending lawsuit is the second major legal challenge EKD has brought against Montgomery Township in recent months, following a dispute over a dismissed development application for research and office space.
As data centers remain a flashpoint in New Jersey, the outcome of this case may set a precedent for how other towns handle similar infrastructure proposals. For now, the property on Grandview Road remains caught between private development interests and municipal zoning authority.