New Jersey Gov. Sherrill wants data centers to pay for their own electricity
New Jersey Governor Mikie Sherrill has proposed a four-point plan to require data centers to pay for their own electricity and report their power and water consumption. The plan also mandates community development agreements to address local concerns like noise and pollution, and promotes union jobs. Legislation is being drafted to implement these measures.
New Jersey Governor Mikie Sherrill has unveiled a comprehensive four-point plan aimed at reforming how data centers operate within the state. The proposal seeks to shift the financial burden of electricity consumption and grid upgrades from New Jersey residents to the data center industry itself.
A key component of the plan involves requiring data centers to contract with their own power generators and fund necessary grid improvements to accommodate their substantial energy demands, which can reach up to 300 megawatts, enough to power an entire town. Additionally, data centers would be mandated to report their power and water consumption to the public every six months, enhancing transparency.
The governor's initiative also focuses on community benefits and labor practices. Data centers would be required to enter into community development agreements, addressing local concerns such as noise and pollution. Furthermore, the plan stipulates that data center construction must utilize union labor and pay prevailing wages, ensuring the creation of good-paying jobs. Legislation is currently being drafted to implement these proposed measures.