New Jersey Needs a Statewide Strategy for Data Centers – Before It’s Too Late
An opinion piece argues that New Jersey needs a comprehensive statewide strategy for data center development due to their immense water and electricity consumption. Current local decision-making is insufficient to address the regional impacts on the environment, utility infrastructure, and rising consumer costs. The author proposes establishing a temporary statewide Data Center Planning Board for coordinated oversight.
Kin Gee writes an opinion piece for the Two River Times, arguing that New Jersey urgently needs a comprehensive statewide strategy to manage data center development. Referencing Mara Tippett of the Raritan Headwaters Association, Gee highlights that land use decisions, particularly for data centers, are fundamentally water decisions. Modern data centers consume vast amounts of freshwater, with a large facility potentially using 5 million gallons daily, equivalent to the needs of 50,000 people. This consumption is unsustainable given New Jersey's frequent drought conditions.
The article also emphasizes the significant strain data centers place on the state's electric grid, contributing to soaring electricity bills for residents. Demand from data centers accounted for approximately 63% of the increase in capacity prices at the 2024 regional electric capacity auction. While Governor Mikie Sherrill has proposed "guardrails" like increased transparency and reporting, Gee contends this is insufficient, citing Virginia's experience with escalating energy demand and community opposition as a cautionary tale.
Gee concludes that leaving data center development decisions to individual municipal planning and zoning boards is inadequate because these projects have regional, statewide impacts on water supplies, electric reliability, and utility costs. The author advocates for establishing a temporary statewide Data Center Planning Board or a centralized review authority to evaluate cumulative impacts, coordinate infrastructure planning, and develop consistent siting standards across New Jersey.