Bell Works Data Center: Did the Ban Come Too Late?

August 12, 2026 - When the "big ugly utility poles" began appearing along some of Holmdel's most scenic roads, many dismissed concerns that they were connected to a future data center. Some speculated they were intended to serve the AT&T facility in Middletown.

Now it appears the real destination may be much closer to home: a proposed data center at the iconic Bell Works - arguably Holmdel's largest and most successful redevelopment.

At Tuesday night's Holmdel Township Committee meeting, the governing body considered an ordinance to ban new data centers. Residents packed Town Hall, many expecting the ordinance to stop a Bell Works proposal.

Instead, they learned it likely won't.

During the meeting, Township Attorney Michael Collins explained what had happened behind the scenes.

- The Bell Works data center application was filed with the Planning Board on July 24, 2026, only three days after the introduction of the ordinance to ban data centers.

- The application was deemed “complete” before the ordinance banning data centers was adopted.

- Under New Jersey's "time of application" rule, the project is reviewed under the zoning rules that existed when the application was filed—not under the new ordinance.

The result? The proposed Bell Works data center is not affected by the new data center ban.

But the larger issue goes even deeper.

The reason the application can move forward is that the 2012 Bell Works Redevelopment Plan expressly permits data centers, at a time before the current wave of hyperscale data centers that are significantly larger than the then-existing enterprise data centers.

Haven't We Seen This Before?

Many residents immediately experienced a sense of déjà vu.

The former Vonage redevelopment followed a remarkably similar path.

A meeting was held about two years ago with Mayor Rocco Impreveduto, alerting him that the existing 50-year-old wastewater management plant would cause water contamination and health risks, affecting over 300,00 residents who rely on the Swimming River Reservoir as their source of drinking water.

When the redevelopment plan was adopted in December 2024, it did not include any requirement for an updated modern wastewater management plant.  Residents were assured they would have ample opportunity to raise concerns during the Planning Board process.

Instead, when the application came before the Planning Board, the recurring response was that the proposal conformed to the redevelopment plan. Therefore, the Board's authority was limited except to approve the application.

Residents who then appealed to the Township Committee were told the Committee could not interfere with a pending quasi-judicial Planning Board matter.

The Planning Board pointed to the Township Committee.

The Township Committee pointed back to the Planning Board.

Frustrated residents were left wondering who, if anyone, could address their concerns.

Will History Repeat Itself?

Many fear the Bell Works data center application will follow the same script.

The applicant will likely argue that a data center is a permitted use under the 2012 redevelopment plan and therefore complies with existing zoning.

The Township Committee has already stated publicly that it cannot comment on a matter pending before the Planning Board.

That left many residents stunned and frustrated Tuesday night as they realized the newly adopted ordinance may do nothing to stop the Bell Works proposed data center.

The application is for a 40 MW data center, the threshold for hyperscale data centers, which may require 200,000 to 440,000 square feet of building space on 10 to 32 acres of land.  The only saving grace is that the 2012 redevelopment plan limits a new data center to the footprint of an existing maintenance building but not the height.

Read more about the risks of data centers: https://actionnetwork.org/petitions/we-need-a-statewide-strategy-for-data-centersbefore-its-too-late/

The Township Committee has demonstrated it is willing to fight when it believes an issue is important.

It challenged New Jersey's affordable housing law through litigation, including appeals. It also sued the owner of Oak Hill Farms and, after losing in Superior Court, immediately appealed.

With widespread public concern over a proposed data center at Holmdel's signature property, many residents are now asking:

Will the Township Committee show the same determination and legal tenacity in defending the interests of Holmdel residents?

Stay tuned.