By Barbara A. Preston for The Montgomery News | June 19, 2026
Breaking News — In this affluent corner of Somerset County, known for its sprawling agricultural heritage and rural vistas, local officials are grappling with a modern, high-stakes confrontation. On June 18, the Montgomery Township Committee held a final vote on an ordinance that would effectively ban the construction of two distinct, yet equally contentious types of facilities: large-scale data centers and immigrant detention or processing sites.
The proposed measure, Ordinance 26-1779, which passed its first reading on May 14, represents a preemptive strike by local leadership. In a climate where suburban municipalities across New Jersey are increasingly finding themselves at the intersection of federal immigration enforcement and the rapid expansion of the artificial intelligence sector, Montgomery is seeking to assert local control before external forces dictate the township's landscape.
The impetus for this move is, in part, the cautionary tale of neighboring Roxbury Township. Earlier this year, a local property owner sold a 470,000-square-foot warehouse to the federal government for conversion into an Immigration and Customs Enforcement (ICE) facility, a development that blindsided local officials and prompted fierce, ongoing litigation. Montgomery residents, citing the stress placed on Roxbury’s limited infrastructure and public safety resources, have urged their own committee to act.
"Our neighbors in Roxbury were blindsided," said Dawn Cohen, a local resident who testified in favor of the ordinance during the committee meeting. "Montgomery simply could not and should not sustain a sudden, large increase of population that will put a strain on our infrastructure."
The detention portion of the ordinance addresses concerns regarding civil holding facilities used by the Department of Homeland Security to house asylum seekers and unauthorized immigrants. While New Jersey has existing state-level barriers to local government contracting with federal immigration authorities, private companies—such as those operating in Elizabeth and Newark—remain active players in the state’s detention landscape. For many residents, the issue is personal; among those currently held at the Elizabeth Contract Detention Facility is Zhang Ming Xi, the well-known restaurateur "Sushi John" who owns the currently shuttered YaYa Noodles in the Montgomery Shopping Center.
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EKahn attorney: "Montgomery should prioritize evaluation over prohibition"
The new ordinance also targets the burgeoning AI sector, which has sparked its own local resistance. As the demand for data centers to power generative AI spikes, communities across the country have reported concerns about noise, increased temperatures, water consumption, and the strain on local electrical grids.
Opponents of the outright ban argue that such an approach is too blunt a tool for land-use planning. Craig M. Gianetti, an attorney representing EKahn’s development interests at what is known locally as the Kenvue site at 199 Grandview in Skillman, argued before Montgomery Township Committee that the township should prioritize evaluation over prohibition. He pointed to Kenvue as an existing, underutilized industrial site in Montgomery that already possesses the high-energy infrastructure—such as dual 69,000-volt transmission lines—necessary to support modern data operations.
"It’s not something to eliminate a modern and necessary infrastructure use without evaluating whether it can be accommodated anywhere in town," Gianetti said, noting that redeveloping obsolete manufacturing sites is preferable to "green field" development. He suggested that rigorous zoning standards and requirements could mitigate potential community concerns without a categorical ban.
"Redeveloping obsolete manufacturing sites is preferable to green field develoment." Attorney Craig M. Gianetti, for EKahn Development.
Environmental Committee Chairperson Mary Reece, a 40-year resident of Montgomery, spoke in favor of the ordinance, banning data centers and detention centers, during the public comment session.
"Protecting our power supply, our water, our land, and our quality of life is not anti-progress — it is responsible governance." Mary Reece.
"Beyond energy and water, the consequences [of data centers] ripple outward in ways that are less visible but not less damaging. Data centers generate relatively few local jobs for their footprint, they produce substantial heat and noise pollution, depress the appeal of surrounding properties, and consume large tracts of land that could otherwise support open space, or businesses that genuinely serve our community," Reece said.
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Montgomery leaders faced a balancing act: Protecting the town’s character and resources while navigating the complex regulatory environment of 2026. As the state government under Governor Sherrill seeks to balance AI development incentives with efforts to enhance accountability for the energy costs passed on to ratepayers, Montgomery Township is setting a precedent for how suburban municipalities might negotiate their autonomy against the competing pressures of corporate tech development and federal and state agency mandates.
For now, the ordinance passed, formalizing a stance that prioritizes the stability of the local community over the rapid industrialization that has recently transformed the suburban landscape elsewhere in the Garden State.
Originally, Kahn said he planned to build an industrial complex on the site, which is located on Grandview Road near County Route 601. Johnson & Johnson once used the site to manufacture disposable diapers. The zoning is still Limited Manufacturing (LM) allowing for office buildings, farms, research labs, and light manufacturing in enclosed buildings that would not produce significant noise, odor, dust, or hazardous waste. Housing is not permitted on the property, and would require a zoning change.
Township officials requested in 2024 that EKD nix the LM plan, and instead look to build an all-residential plan of 417 units, including 70 affordable units, he said. After spending some $500,000 on developing the housing plan, Kahn said, Montgomery officials abruptly abandoned the high-density residential proposal for the site that was meant to satisfy the state’s Round 4 affordable housing mandate. A public outcry regarding the proposed high density development motivated the township's pivot.
Kahn says he submitted a fully-engineered "by-right" industrial development plan to the Montgomery Township Planning office, and expects it to be heard by the Planning Board soon.
Kahn is simultaneously seeking community support for a less dense, mixed-use residential alternative. He has owned the property since December 2025, and he said Kenvue is currently leasing back the existing South Building until the end of 2026 before fully relocating.
