Daily Digest — May 28, 2026
New Jersey Governor Unveils "Guardrails on Data Centers" Policy
New Jersey Governor Mikie Sherrill announced a comprehensive regulatory framework for data centers, rejecting a statewide moratorium but requiring facilities to cover their own infrastructure costs. According to New Jersey 101.5, the policy would mandate that data centers consuming 100 MW or more guarantee payment for at least 85% of their requested electricity for a minimum of 10 years. A second bill would require reporting of energy and water usage to the state.
The announcement was made alongside Democratic lawmakers, a Republican mayor, and representatives from the Sierra Club and IBEW Local 102. As reported by Gothamist, the Governor is also directing the Department of Community Affairs to establish guidelines for community benefit investments from data center operators. The initiative follows New Jersey experiencing the largest electricity bill increases in the nation last year, partly attributed to data center energy demand.
Local opposition continues to shape the landscape. NBC10 Philadelphia reported the plan as a four-part initiative responding to community concerns, while WFMZ noted the Governor characterized New Jersey's approach as uniquely comprehensive compared to other states' piecemeal efforts. Environmental groups including the Pinelands Alliance acknowledged the energy provisions but noted that water resource concerns — particularly regarding South Jersey's Kirkwood-Cohansey aquifer — remain insufficiently addressed.
Separately, Central New Jersey News reported that several New Jersey towns are moving independently to ban data centers, driven by resident concerns over costs. A federal lawsuit was also filed by Vineland residents against the Data One AI data center over noise nuisance claims, according to New Jersey 101.5.
New Jersey won’t ban AI data centers — but Sherrill says residents shouldn’t pay the price for them
New Jersey 101.5
NJ towns move to ban data centers as residents fear costs
Central New Jersey News
NJ Governor Mikie Sherrill introduces guardrails for data centers
NBC10 Philadelphia
Gov. Sherrill lays out plan to ease AI data centers' burden on NJ towns, electric bills
Gothamist
NJ Gov. Sherrill unveils plan to address data center energy impact
WFMZ.com
Pennsylvania Governor Finalizes GRID Standards; Republican Lawmakers Push Counter-Legislation
Pennsylvania Governor Josh Shapiro formally released the Governor's Responsible Infrastructure Development (GRID) Standards, establishing criteria data center developers must meet to receive state support, tax exemptions, and fast-track permitting. According to WVIA Public Media, developers achieving GRID Certification would qualify through the state's Office of Transformation and Opportunity and Department of Revenue.
The standards are built on four pillars:
- **Energy affordability**: Developers must provide their own energy, with escalating clean energy requirements (10% by 2027, 32% by 2035) and cover all transmission and distribution upgrade costs
- **Transparency**: Mandatory public reporting of water and electricity consumption, campus footprint, and community outreach plans
- **Workforce and economic development**: Minimum $250 million investment, 200 construction jobs, and 50 permanent jobs paying 125% of statewide average salary within four years
- **Environmental protection**: Sustainability plans, advanced efficiency technology, and minimization of local air pollutants
As reported by Inside Climate News, experts at the University of Pennsylvania's Kleinman Center called the "Bring Your Own Energy" provision "a big step in the right direction" but noted implementation challenges, including coordination with FERC, PJM Interconnection, and the Pennsylvania PUC. The PUC recently released a model tariff to prevent consumers from shouldering data center costs, though it cannot mandate adoption. A House-approved bill (HB 1834) with similar provisions remains stalled in the Senate.
WHYY reported that industry groups have characterized the proposed framework as "complicated" and potentially detrimental to development, while environmental advocates argue it prioritizes corporations over environmental protection. The state projects that the current data center tax exemption under Act 25 of 2021 could cost over $517 million annually by FY 2030-31, according to WVIA.
Meanwhile, Republican state legislators Sen. Jarrett Coleman and Rep. Jamie Walsh introduced a counter-package. According to The Valley Ledger, Senate Bill 1344 and House Bill 2532 would repeal the 2021 data center equipment tax exemption, redirecting revenue to reduce the Oil Company Franchise Tax. Senate Bill 1345 and House Bill 2533 would grant municipalities authority to implement 18-month moratoriums on data center applications. As reported by local21news.com, Senate Majority Leader Joe Pittman acknowledged the Governor's proposal.
Pennsylvania Governor Proposes New Energy Standards for Data Centers
Inside Climate News
Gov. Shapiro announces plan to attract ‘responsible’ data center development
WHYY
Gov. Josh Shapiro announces finalized data center development standards in Pennsylvania
WVIA Public Media
Coleman, Walsh Seek to Combat Data Center Spread
The Valley Ledger
Pennsylvania Governor Shapiro Proposes New Data Center Regulations
local21news.com
Box Elder County Data Center Faces Referendum Decision, Continued Opposition
The Box Elder County Attorney is expected to issue a decision on a citizen referendum challenging the approval of the Stratos AI data center project, according to ABC4 Utah. The Box Elder Accountability Referendum (BEAR) organization is pursuing the referendum to allow county residents to vote on the project's future, with organizers awaiting word on whether they will proceed with signature gathering or a lawsuit.
A public forum held in the county, as reported by The Herald Journal, featured researchers presenting environmental impact analyses. Utah State University professor Rob Davies presented preliminary findings suggesting the project's waste heat could raise nighttime temperatures in Hansel Valley by 10-12 degrees Fahrenheit. BYU professor Ben Abbott raised concerns about water consumption estimated at over 4 billion gallons annually, against the backdrop of the shrinking Great Salt Lake. KUTV reported the forum was organized by groups including Grow the Flow and Stewardship Utah.
The Stratos project, covering 40,000 acres across three sites and projected to require 9 GW of power, was approved by Box Elder County commissioners despite thousands of objections, according to Jezebel. The project is overseen by the Military Installation Development Authority (MIDA), though panelists at the forum noted that much of the land is unzoned county property requiring county authorization.
Box Elder County Attorney expected to issue decision on referendum against controversial data center
ABC4 Utah
Public forum answers data center questions, highlights concerns
The Herald Journal
Public forum highlights concerns, questions about proposed Box Elder County data center
KUTV 2 News Salt Lake City
Massive Data Center Projects Spark Environmental and Ethical Concerns in Utah and Louisiana
jezebel.com
Federal Data Center Legislation Gains Momentum
Data center regulation is escalating at the federal level, with multiple bills under consideration in Congress. According to the Pagosa Daily Post, proposals include:
- A moratorium on new AI data centers, sponsored by Sen. Bernie Sanders (I-VT) and Rep. Alexandria Ocasio-Cortez (D-NY)
- Legislation requiring data centers to pay full energy costs and fund grid upgrades, championed by Reps. Mike Levin (D-CA) and Greg Landsman (D-OH)
The EPA is also proposing regulatory changes to streamline data center permitting, while the White House has introduced a "Ratepayer Protection Pledge" with major tech companies. Industry lobbying on data center policy totaled over $226 million in 2025 from firms including Microsoft and Oracle, per the same report. The Jezebel report also noted potential ethics concerns in Louisiana, where State Senator John "Jay" Morris allegedly lobbied for Meta's Hyperion data center while acquiring adjacent land that subsequently increased in value.
Jackson, Mississippi Rezoning Hearing Postponed Amid Vocal Opposition
The Jackson Planning Board tabled a rezoning request from Saxum Investment Group for a proposed data center after the developer requested a postponement, according to The Clarion-Ledger. Saxum seeks to rezone approximately 190 acres near Forest Avenue and Interstate 220 from residential and commercial to I-2 heavy industrial use. The hearing has been rescheduled to June 24.
Dozens of residents packed the meeting, chanting "No data centers!" and holding protest signs, as reported by WLBT. Attorney Robert Ireland, representing Saxum, cited the need for additional community engagement and noted the city is developing data center-specific standards. According to Tippah News, Ireland emphasized the economic potential, and DeSoto County News reported he highlighted a "finite window of opportunity" for Jackson to attract such projects.
The Jackson City Council is separately considering a six-month moratorium on new data center projects, though the city attorney's office has warned that passing it without proper public notice could raise due process concerns. A public hearing on data center regulations is scheduled for June 22. Mississippi currently has seven confirmed data centers in various development stages.
Cheyenne City Council Rejects 12-Month Data Center Moratorium
The Cheyenne City Council voted 8-1 (with some sources reporting 9-1) to reject a proposed 12-month moratorium on data center development, following nearly four hours of public testimony. According to Cowboy State Daily, Councilman Mark Moody, who authored the ordinance, cast the sole vote in favor.
As reported by Cap City News, residents raised concerns about water and power demands, noise pollution, and environmental impacts. Union workers from organizations including the Wyoming AFL-CIO and IBEW Local 415 argued against the moratorium, citing economic benefits and employment opportunities from companies like Meta and Microsoft. WyoFile reported that Cheyenne is currently considering proposals for an estimated 40 to 70 new data centers.
Council members cited existing growth management processes and the lengthy development timeline for data centers — approximately six years including electrical agreements — as reasons a moratorium was unnecessary, according to WyomingNews.com. Prior to the moratorium vote, the council also approved a rezoning classification for the Cheyenne Business Park and Campstool Business Park on second reading, as reported by Cowboy State Daily. The decision contrasts with Denver's recent enactment of a one-year freeze on new data centers.
Full Speed Ahead For Cheyenne Data Centers As Council Rejects Moratorium
Cowboy State Daily
Cheyenne City Council rejects data center moratorium
Cap City News
Cheyenne City Council votes down data center moratorium
wyomingnewsnow.tv
City Council votes down proposed 12-month data center moratorium
WyomingNews.com
Cheyenne rejects moratorium on data centers
WyoFile