NJ Senate committee backs bill forcing data centers to use their own renewable power sources.

The New Jersey Senate Environment and Energy Committee has passed a bill that would require data centers built in the state to use only renewable or nuclear energy to power their operations. The bill, sponsored by Sen. Bob Smith (D-Middlesex), is an attempt to address the growing concerns over the strain that data centers are placing on the state's power grid and the resulting spike in electricity costs for New Jersey residents. According to the article, New Jersey utility customers saw an average 20% increase in electricity costs last year, and Gov. Mikie Sherrill issued an executive order compelling the state Board of Public Utilities to issue credits to offset a rate increase this year. The bill would require new data centers powering artificial intelligence or cryptocurrency mining to get their power from renewables such as solar, wind, hydropower or geothermal technologies, or from new nuclear sources. The bill is similar to one that advanced early in the last legislative session but did not gain traction. This time, the committee passed the bill along party lines, with Democrats in favor. However, it would only take effect if a majority of 12 other states in the PJM region, which operates the power grid serving New Jersey and a dozen other states, adopt similar measures. This is an attempt to prevent data centers from relocating to nearby states with laxer rules and to ensure that any regional demand decrease doesn't drive up energy costs. The bill has faced some opposition from industry groups, such as the NJ Business and Industry Association, which supports the concept but wants the requirements to only apply to the largest data centers and to include other energy sources like natural gas. On the other hand, environmental advocates like the Climate Revolution Action Network argue that the technology exists to require data centers to use 100% clean energy.