Legislation Tackling Rising Energy Demand from AI Data Centers Clears Committee

The New Jersey Senate Environment and Energy Committee, led by Chair Senator Bob Smith, has advanced two pieces of legislation to address the growing energy demands of data centers, particularly those used for artificial intelligence (AI) applications. Senator Smith noted that while AI data centers offer economic potential, they must avoid overburdening the state's energy grid, which could drive up costs for consumers, businesses, and families. To address this, the committee advanced Bill S-680, which would require new AI data centers and cryptocurrency mining facilities to source all their electricity from new Class I renewable energy sources, new nuclear sources, or a combination. These facilities would also have to submit an energy plan to the Board of Public Utilities (BPU) to certify their clean energy sourcing and energy efficiency plans. The committee also advanced Bill SR-18, sponsored by Senators Smith and Linda Greenstein, which would urge the District of Columbia and 12 other states in the PJM Interconnection region to implement similar requirements for data centers to use electricity from new zero or low-emission sources. Senators say this regional approach is needed to protect consumers from rising energy costs driven by the growing data center industry.