By Barbara A. Preston for The Montgomery News | August 13, 2026
Breaking News: E. Kahn Development, (EKD), filed a lawsuit on July 31 in Superior Court against Montgomery Township. The developer is claiming local officials passed a data center ban without a valid reason amid ongoing disputes over the future of the 257-acre property, which is zoned for limited-manufacturing.
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, represented 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.
EKahn wants a judge to overturn the data center ban, and is seeking $300 million in damages from the township.
According to the complaint, “The action of the Township Committee was clearly based upon public hysteria and political attention rather than sound land use planning.”
EKahn attorney: "Montgomery should prioritize evaluation over prohibition"
The new ordinance 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.
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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 on June 18 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 development." Attorney Craig M. Gianetti, for EKahn Development.
Montgomery Township removed the Kenvue (former Johnson & Johnson) corporate campus in Skillman from its Round 4 Affordable Housing Plan after intense public pushback and an alternative settlement. The property owner, Kahn Development, subsequently filed a lawsuit against the planning board and submitted a by-right industrial layout while pushing for a less dense mixed-use option. Coverage of these developments has been closely tracked by The Montgomery News.
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Montgomery Township initially eyed the 257-acre Kenvue site on Grandview Road and Route 601 for a high-density residential project comprising 417 units (including 70 affordable units) to meet state-mandated obligations.
Following a legal agreement to extend affordability controls on existing developments like Pike Run, the township dropped the Kenvue site from its active housing element.
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.
Montgomery Township Planner/Administrator Lori Savron told The Montgomery News: "We do not comment on pending litigation. We also have not been served."
