New Jersey to put a series of ‘guardrails’ on data centers
New Jersey Governor Mikie Sherrill announced a plan to implement "guardrails" on data centers, aiming to control energy costs and grid demands. The proposal includes requiring data center owners to bring their own energy to the grid and fund necessary upgrades. The Governor intends to work with the state Legislature to establish these new rules.
New Jersey Governor Mikie Sherrill unveiled a four-point plan to impose "guardrails" on data centers, aiming to mitigate their significant impact on the state's power grid and rising energy costs for residents. The Governor highlighted a 20 percent increase in electric bills for New Jerseyans over the past year, attributing a substantial portion of this rise to the burgeoning demand from data centers.
A central tenet of Sherrill's proposal requires data center owners to supply their own energy to the grid and cover the costs of necessary infrastructure upgrades to accommodate their substantial power requirements. Governor Sherrill plans to collaborate with the state Legislature to enact these new regulations. She emphasized that the escalating energy demand from data centers is "outpacing supply and jacking up all of our electric bills," vowing to prevent residents from bearing these costs.