NUTLEY, NJ — Is an AI data center coming to Nutley? Not right now – but the door is open to the possibility in the future, township officials say.
The Township of Nutley Board of Commissioners recently released a list of "frequently asked questions" involving the potential construction of a data center at the ON3 site, located at 275 Kingsland Street.
According to the commissioners, a settlement agreement with the owner of the property allows for the addition of a data center. However, the town hasn't gotten an application for planning board approval yet – which would be needed before any construction could begin.
For years, Nutley and Clifton were home to pharmaceutical giant Hoffman LaRoche, which operated a campus on Route 3. Prior to leaving Nutley, Hoffman LaRoche generated nearly 10 percent of the town's tax revenue.
After Hoffman LaRoche closed its campus in the towns, the property was purchased by a developer, Prism, and re-marketed as ON3. Nutley and Clifton declared the former Hoffman LaRoche campus an area in need of redevelopment and designated Prism as the redeveloper.
The relationship didn't turn out as hoped, Nutley officials said:
"Thereafter, numerous lawsuits were filed by and between Prism, Nutley and Clifton and several rulings in those lawsuits were against Nutley. One of those rulings allowed Prism to proceed with its application to construct a trucking terminal on Kingsland Avenue. We did not want a trucking terminal on Kingsland Avenue, and we also wanted to stop the litigation and the payment of legal fees. Following several months of negotiations, we reached a comprehensive settlement agreement with Prism that will allow the former Hoffman LaRoche campus to be further redeveloped and generate additional revenue for Nutley."
The settlement agreement includes several possible uses for the property, such as assisted-living facilities, offices, science and clinical laboratories, storage facilities, research laboratories, active and passive recreation, or open space on Kingsland Avenue.
It also includes the possibility of a data center.
Prism recently put up a sign at the site, advertising it as available for a data center – which led to questions from residents.
However, as of Sept. 25, nobody has submitted an application to build a data center at 275 Kingsland Street, town officials said.
Any proposal would have to go through the local planning board, which will evaluate the application pursuant to New Jersey's Municipal Land Use Law. Residents will be able to participate in the ensuing hearings.
Dozens of towns and cities in New Jersey have passed full or partial bans on AI data centers over concerns about their environmental and social impact.
Supporters of data centers say they're needed to keep the state competitive in the rapidly growing artificial intelligence industry. But critics allege that they consume too much power and water, jacking up utility bills for local residents.
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