Summit Amends Data Center Policy Again, Moves Proposal Toward Final Vote

SUMMIT, NJ — The Summit Common Council is moving forward with another revision to the city's data center regulations after weeks of discussion over how these facilities should be handled.

The council unanimously introduced the revised ordinance Tuesday, sending it back to the Planning Board for review before a final public hearing and vote scheduled for the July 28 Common Council meeting.

The latest proposal marks another change from an ordinance approved by the council last month that would have allowed data centers up to a 20-megawatt limit.

That earlier proposal drew criticism from residents who said the size limit could allow large-scale facilities with significant energy demands.

"The public came out on social media, they came out here, and they said basically to council, 'What are you doing? We can't have 20 megawatts. That's way too big,'" Councilmember Jamel Boyer said.

Boyer said the council responded by pulling back the previous ordinance and taking another look at how data centers should be regulated in Summit.

The revised ordinance would prohibit dedicated data centers while allowing limited computer-related infrastructure for businesses that need technology systems as part of their regular operations.

The proposal also includes a new restriction on accessory data processing facilities, limiting them to 20% of a building's gross floor area or 1,000 square feet, whichever is less. The 1,000-square-foot limit would apply across buildings located on connected properties.

Boyer said the goal is to prevent a large-scale computing operation from being classified as a smaller use under the city's zoning rules.

"We want to prohibit all of that, and one way to do it is to put a 1,000-square-foot cap as an aggregate, so that you can argue against that," Boyer said.

He pointed to large corporate properties, including the Bristol Myers Squibb campus, as an example of why officials wanted clear limits in place.

Council members said the ordinance was not intended to prevent businesses, hospitals, or other organizations from maintaining normal computer equipment and data storage systems.

Newly sworn-in Councilmember Andrew Smith said the ordinance includes an exception for "computer centers" that are secondary to a business's primary operations.

"We're carving that provision out for computer centers, so that there is the ability for businesses to have part of their property, part of what they're doing for the storage of computer data," Smith said.

The ordinance also includes protections for existing operations that already have computer infrastructure through a preexisting nonconforming use provision.

While council members supported introducing the ordinance, some residents raised concerns about how quickly the changes were made and whether the new restrictions reflected recommendations from the city's planning professionals.

Delia Hamlet, a Summit resident and Planning Board member, questioned why residents did not have more time to review the planning materials before the vote.

"What you guys did was you took the memo, you didn't publicize it, you didn't show the comments publicly, and then you took the most important piece out," Hamlet told the council.

Hamlet also questioned whether the 1,000-square-foot limit would hold up legally.

"1,000 square feet is not going to be legally defensible, it's not sound planning," Hamlet said. "You could take Oak Knoll or Kent Place. It's going to exceed 1,000."

Other residents said the repeated changes to the ordinance made it difficult for the public to follow the discussion.

Dorie Gagnon, of Bedford Avenue, said she has attended council meetings and still struggled to understand the changes being considered.

"You've amended two ordinances this year, and I've watched almost every council meeting, and I have no idea what the heck is going on," Gagnon said.

Gagnon said residents need more opportunities to ask questions and understand proposed changes before decisions are made.

"I think it was a time when you amend an ordinance to have people like me ask a question, because I don't know what just happened," she said.

During the meeting, city planner Joe Burgess was also asked about the new 1,000-square-foot restriction. Burgess said the limit was "somewhat superfluous" because another amendment added to the ordinance already prohibits artificial intelligence computing as an accessory use.

The ordinance will now go before the Planning Board for review before returning to the council for a final public hearing and vote on July 28.

Councilmember Chantal Landman also discussed recent action at the state level involving proposed legislation related to tax incentives for data center development.