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Controversial Montvale Data Center Proposal Faces Legal Challenge

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By Editorial BoardFriday, May 15, 2026
Controversial Montvale Data Center Proposal Faces Legal Challenge

Montvale finds itself at the heart of a legal dispute as the borough's proposal to develop a large data center at the former KPMG site encounters pushback from the Fair Share Housing Center. The disagreement centers on the borough's settlement with developers SHG Montvale to construct a data center along with housing units on the 44-acre parcel at 3 and 51 Chestnut Ridge Road. This plan has been met with criticism from the Fair Share Housing Center, which argues that it undermines state-mandated affordable housing obligations.

According to a revised settlement, the borough proposed several development sites including the KPMG location, with plans for 250 units, 50 of which would be categorized as affordable. Other sites being considered include the TOP Site, Glenview/25 Philips Site, Reckitt Site, and 30 Craig Road, each varying in total and affordable unit numbers.

The court battle has intensified since Fair Share challenged the inclusion of the data center option in the development plan. State Superior Court Judge Lina Corriston has set a schedule with briefs due by May 29 and responses by June 12, with a case management conference shortly thereafter on June 22. Montvale's Mayor Mike Ghassali remains confident, stating that the borough's strategy is constitutionally compliant and should be upheld.

This legal conflict highlights ongoing tensions in New Jersey's affluent municipalities over affordable housing requirements imposed by state mandates. The outcome of this case could set a precedence affecting similar disputes across the region.

Sources

Published Friday, May 15, 2026 BergenWorks Editorial
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