Sherrill proposes ‘guardrails’ for data centers
New Jersey Governor Mikie Sherrill announced a four-step "guardrails" plan to manage the increasing energy demand from data centers across the state. The plan requires data center developers to fund their own energy infrastructure, report energy and water usage, engage with local communities on impacts, and use union labor. Legislative action is underway to implement these proposed restrictions.
New Jersey Governor Mikie Sherrill unveiled a comprehensive four-step "guardrails" plan on Wednesday, aimed at regulating data center development within the state. The initiative seeks to address the escalating energy demands these facilities place on New Jersey's power grid, which Governor Sherrill described as "skyrocketing" and contributing to higher electric bills for residents.
The proposed plan mandates that data center developers take responsibility for their energy needs, including bringing new energy to the grid. It also calls for transparency through the reporting of energy and water consumption, active community engagement to mitigate concerns such as noise and light pollution, and the use of union labor for construction, ensuring strong wages. Governor Sherrill emphasized that legislative work is already in progress to enact these goals.
The announcement comes amidst growing public skepticism and political opposition to data centers in New Jersey. Polls indicate that a majority of New Jersey voters do not want data centers in their towns and favor a moratorium on new construction. State legislators have also announced intentions to introduce bills that would cut tax incentives for data centers, and opposition has become a central theme for several political candidates. Michele Siekerka, President and CEO of the New Jersey Business & Industry Association, viewed the plan as a signal that the industry is welcome but stressed the need for balance. Jackson Morris, director of the State Power Sector at the Natural Resources Defense Council, praised the guardrails and urged swift legislative action to enforce them, highlighting the potential for New Jersey to become a national leader in data center regulation.