Mahwah, N.J., Bans Big Data Centers, Cuts $5.84M DPW Bond Debt

Bergen TV Exclusive: MAHWAH, N.J. — The Mahwah Township Council voted 6-0 on Monday, Oct. 26, to adopt Ordinance 2105, prohibiting high-density “hyperscale” data centers drawing more than 50 megawatts of electricity across every zoning district in the township while the Planning Board completes a master plan study due June 30, 2027.

Before the roll call, Council President Robert M. Ferguson III and Councilman Jonathan S. Wong stated on the record that the Planning Board’s attorney “misspoke” on Oct. 19 when he told residents that the 140-acre Crossroads redevelopment site at the Interstate 287 and Route 17 interchange was exempt from the ban. Wong cited Section 6.2A () of the Crossroads Redevelopment Plan, which incorporates Chapter 24’s zoning definitions by reference, and stated that hyperscale data centers of 50 megawatts and above are barred at Crossroads without requiring a separate redevelopment plan amendment.

Moments after adopting the data center ban, the council also voted 6-0 to adopt Bond Ordinance 2106, canceling $5,842,500 in authorized debt from October 2025 for a Department of Public Works garage, and Ordinance 2107, shifting $810,000 in capital improvements to the township’s Capital Fund Balance.

How Council Leaders Reversed the Oct. 19 Crossroads Statement

As Bergen TV first reported on Oct. 22, the Mahwah Planning Board’s attorney told residents during the board’s Oct. 19 master-plan consistency review (at 13:24 of the Oct. 19 Planning Board video) that “Crossroads is not subject to this ordinance, because Crossroads is subject to a redevelopment plan,” adding that the Crossroads plan permits “data centers” without specifying regular or hyperscale facilities. The board’s professional planner agreed at that meeting: “That is my understanding.”

During Monday night’s 31-minute public hearing on Ordinance 2105, nine speakers—including Mahwah residents and Mahwah High School students—questioned the electric grid impact on Rockland Electric Company (RECO) ratepayers, cooling water demand in the Ramapo River basin, backup diesel generators, and whether the 140-acre Crossroads tract remained open to a hyperscale facility.

When public comment closed, Ferguson addressed the Oct. 19 Planning Board exchange directly at 59:55 of the council broadcast:

“I do think the Planning Board misspoke when it presented last week. This ordinance, what it’s really doing is it’s breaking data centers into two categories. You have enterprise data centers, which are less than 50 megawatts, and you have hyperscale data centers, which is 50 megawatts and over. This ordinance is banning 50 megawatts and higher in all zones. So hyperscale data centers does not exist in the affordable housing settlement and in the redevelopment agreement. So they are banned in all zones.”

At 1:05:04, Wong—who served alongside Ferguson and Council Vice President George Ervin on the council’s Ordinance Committee—stated that the Crossroads Redevelopment Plan automatically pulls in the new zoning definitions:

“At the Crossroads site, a hyperscale data center is not permitted. And I agree with his point—we do believe that the Planning Board attorney misspoke on that. In fact, the redevelopment plan, which the council does have considerable discretion on amending and changing and making it stronger if necessary at a later time, however, as of right now, it incorporates all the definitions from the code into the plan. So once this ordinance is passed, a hyperscale data center will, by the preamble section of the definition section in the redevelopment plan, be incorporated by reference, and it will not be permitted because only data centers on that lower scale amount is permitted.”

During council discussion prior to the vote, Councilwoman Janet Ariemma asked (at 1:09:45) whether the governing body still needed to amend the wording of the Crossroads Redevelopment Plan so it explicitly states that data centers must remain below 50 megawatts. Wong replied at 1:10:02:

“No, you don’t, because you already have it by incorporation of the definition section of your zoning code by reference. A hyperscale data center will now be incorporated into the redevelopment plan by virtue of the preamble at 6.2A, which is of the redevelopment plan.”

Bergen TV verified that citation against the printed Crossroads Redevelopment Plan (dated Dec. 2, 2022, prepared by Colliers Engineering & Design). Under Section 6.2A (“Definitions,” pages 18–19), the plan reads: “Any term not defined herein shall rely upon the definitions within Chapter 24 Zoning, specifically §24-1.5b.” Because Ordinance 2105 amends §24-1.5 to define both “Data Center” and “Data Center, Hyperscale” (greater than 50 megawatts) and amends §24-3.8 to prohibit hyperscale data centers in all zone districts, council leaders stated the 50-megawatt ceiling now governs undefined “data center” references in the Crossroads plan as well.

Why the Council Kept the 50-Megawatt Line—and Protected the $2M-a-Year NYSE Facility

Several speakers at Monday’s hearing, along with Ariemma, asked whether the council should lower the threshold from 50 megawatts to 30 megawatts or enact a flat ban on new data centers while the Planning Board conducts its review.

Ferguson and Wong gave two reasons for keeping the 50-megawatt threshold in Ordinance 2105:

• Preserving the New York Stock Exchange (NYSE) Data Center on MacArthur Boulevard: Ferguson noted at 1:01:20 that Mahwah already hosts two colocation data centers, the largest of which is the NYSE facility at 1700 MacArthur Boulevard in the ORP-200 zone. “Anyone who makes a stock transaction through the New York Stock Exchange, more than likely it goes through Mahwah,” Ferguson said. “It’s a huge ratable for town. It pays $2 million a year in taxes. It’s a fantastic corporate partner in town.” With expansion work currently underway at the site, Ferguson said the NYSE facility will “probably be in the 35 megawatt range when it’s all said and done,” and the council wanted to leave room under the 50-megawatt ceiling so the exchange does not become a nonconforming use.
• Aligning With New York and New Jersey State Definitions: Ordinance 2105 cites New York Governor Kathy Hochul’s July 14, 2026 Executive Order No. 62, which paused new hyperscale data center permitting in New York State and created what the ordinance calls “a present and specific incentive for the redirection of such projects into the Township” just across the state border. Wong also cited New Jersey Senate Bill S-731, which defines a large-load data center at 50 megawatts or above for Board of Public Utilities (BPU) tariff and grid regulation, noting that using the state’s 50-megawatt definition avoids state preemption challenges while the Planning Board studies whether a lower local threshold or closed-loop water rules are warranted.

To prevent a developer from bypassing the 50-megawatt cap by splitting a campus into smaller buildings, Section 2 of Ordinance 2105 includes an Aggregation clause requiring the township to combine the total electric load of multiple buildings on the same lot, on contiguous lots (or lots separated only by a street, right-of-way, easement, or watercourse) that share electrical, cooling, water, or security infrastructure, or that form part of a phased “common scheme or plan of development.” The Planning Board must deliver its study and recommendations for permanent regulations to the council by June 30, 2027.

$5,842,500 DPW Garage Bond Canceled and Other Oct. 26 Financial Votes

Following the 6-0 vote on Ordinance 2105 (with Ferguson, Ervin, Ariemma, David May, Michelle Crowe Paz, and Wong voting yes, and Councilman Ward Donigian absent), the council unanimously adopted three additional ordinances and a major water infrastructure engineering contract:

What It Means for Mahwah Property Taxpayers

Canceling the unissued $5,842,500 DPW garage bond ordinance removes nearly $5.84 million in authorized general capital debt from Mahwah’s books before any borrowing costs hit the municipal tax levy, while the $10 million water meter replacement program (including H2M’s $766,000 full-time inspection contract required by the New Jersey Infrastructure Bank) will be repaid over roughly 30 years through the water utility rather than the general property tax rate, Township Engineer Michael J. Kelly, P.E. and Business Administrator Benjamin Kezmarsky told the council during the work session.

Mahwah homeowners who want to check how their current property assessment compares with recent sales—or see whether their tax bill is overassessed—can run a free property check using the GardenState.ai Property Tax Appeal analyzer and track local home valuations with the GardenState.ai Home Value estimator.

More from Bergen TV: Mahwah, N.J., Data Center Ban Leaves Crossroads Open, Board Attorney Says · Ramsey, N.J., 56-Unit Plan Would Use Mahwah Home Depot Lot for Access · Old Tappan, N.J., Bans Short-Term Rentals and Boarding Houses

Bergen TV asks: Should Mahwah keep the data center cap at 50 megawatts or lower it to 30 megawatts after the Planning Board completes its study? Share your take in the comments.

Sources

• Township of Mahwah Combined Work Session and Public Meeting video, Oct. 26, 2026 (Swagit #405074)
• Township of Mahwah Combined Work Session and Public Meeting Agenda Packet, Oct. 26, 2026 (full text of Ordinances 2105, 2106, 2107, and 2108, and Resolution 324-26)
• Township of Mahwah Notice of Public Hearing — Ordinance No. 2105 (Municipal Clerk Carolyn George)
• Mahwah Crossroads Redevelopment Plan (Dec. 2, 2022, Section 6.2A, pages 18–19)
• Mahwah Planning Board meeting video, Oct. 19, 2026 (Swagit #404337) and Mahwah Township Council meeting video, Oct. 12, 2026 (Swagit #403632)