New Jersey Data Centers Will Have to Disclose Energy and Water Use Under New Law
New Jersey has enacted a law requiring data center operators to report their energy and water usage to the Board of Public Utilities semi-annually, with much of the information becoming publicly available. Signed by Gov. Mikie Sherrill, this legislation is part of a broader state initiative to manage the demands data centers place on resources and communities. The state also issued new guidance and technical assistance to help municipalities evaluate proposed data centers and negotiate community benefits agreements.
New Jersey has enacted a new law, S3379/A4096, requiring data center owners and operators to disclose their electricity and water consumption to the New Jersey Board of Public Utilities (BPU) twice a year. Much of this data, including total energy consumption, cooling energy use, IT equipment energy, and water sources and peak daily use, will be made publicly available online.
Gov. Mikie Sherrill signed the legislation as part of a comprehensive state effort to address the significant demands data centers place on the electric grid, water supplies, and local communities. Assemblyman Michael Venezia, a bill sponsor, emphasized the need for state-specific data to understand the industry's impact on energy affordability and resource planning.
In conjunction with the new law, the Sherrill administration announced new guidance and technical assistance for municipalities. The Department of Community Affairs guidance focuses on community benefits agreements, advising local governments on how to negotiate with developers to mitigate project impacts and secure investments for host communities. The state is making technical assistance available through the Economic Development Authority, BPU, and Department of Environmental Protection.
These actions follow previous legislation signed by Gov. Sherrill in July, which created a separate utility rate class for data centers to ensure they bear the costs associated with their high electricity demand. The broader policy also includes labor standards for construction projects and guidance for managing issues like noise, light, and pollution through community agreements.