News
May 8, 2026

New Jersey Residents Rally Against Proposed $1.8B Data Center in Kenilworth

Construction Owners Editorial Team

New Jersey Residents Rally Against Proposed $1.8B Data Center in Kenilworth

KENILWORTH, N.J. — Residents in the small borough of Kenilworth are voicing opposition to a proposed $1.8 billion data center project currently under construction on the site of a former pharmaceutical facility.

Courtesy: photo by Paul Hanaoka on Unsplash

The 400,000-square-foot development is being built at the former Merck Pharmaceuticals property on Galloping Hill Road near the Garden State Parkway. The project is tied to AI cloud computing company CoreWeave, whose data center operations are already underway at the site, now referred to as the Nest Center.

Residents gathered outside a municipal council meeting Wednesday evening carrying cowbells and whistles to protest the development, saying many people in the community were unaware of the project until construction activity had already begun.

The borough spans only about two square miles, and some residents expressed frustration over what they described as a lack of public discussion surrounding the approval process.

“She didn’t know much about it. Doesn’t think it’s a good idea, especially if it’s going to be polluting the area,” resident Carl Steinmetz said during interviews conducted near the project site.

Utility markers have reportedly appeared throughout nearby neighborhoods as infrastructure work progresses around the development.

Residents Raise Concerns Over Utilities and Environmental Impact

Neighbors living near the project site said local students played a major role in raising awareness about the data center proposal.

According to several residents on Washington Avenue, high school students went door-to-door encouraging neighbors to attend meetings and become involved in discussions about the project’s long-term impact on the community.

“We should at least have a say in what goes on in the community,” one resident said during the gathering.

Local resident Shawn Smith, who lives across from the site entrance, said concerns over electricity usage, water consumption and infrastructure demands helped mobilize opposition efforts.

“We all know what affects our water bill, electric bill. Even though they say it’s not.. they’re building poles to tap into their supply, but we all know it’s based on the area usage,” Smith said.

Data centers have increasingly become flashpoints in communities across the United States as demand for artificial intelligence computing and cloud infrastructure accelerates. Critics often point to concerns involving energy consumption, water use, noise and utility infrastructure upgrades.

At the same time, developers and local officials frequently highlight economic development opportunities, tax revenue generation and job creation tied to the facilities.

CoreWeave Defends Community Investment Strategy

In a statement provided to reporters, CoreWeave defended the project and emphasized its commitment to community engagement.

“CoreWeave views data centers as investments in the communities that host them,” the company said.

Courtesy: photo by Taylor Vick on Unsplash

“Our facility is designed to be a responsible neighbor and to support long-term economic activity in the region. We remain committed to ongoing engagement which is central to how CoreWeave earns its place in the communities where we operate.”

The project reflects the continued expansion of AI-focused data infrastructure nationwide as technology companies race to secure additional computing capacity.

New Jersey has emerged as a growing market for data center investment due to its proximity to major East Coast population centers and existing utility infrastructure. However, projects in densely populated suburban communities have increasingly faced scrutiny from residents concerned about quality-of-life impacts.

Construction activity at the Kenilworth site remains ongoing as opposition groups continue pushing for greater transparency and community involvement in the development process.

Originally reported by Toni Yates in ABC 7 News.

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