New Jersey Governor Mikie Sherrill Proposes Data Center Regulations Amid Energy Concerns
New Jersey Governor Mikie Sherrill has proposed a four-part plan to regulate new data centers, citing their role in rising electricity costs. The plan aims for data centers to cover their own energy costs, report resource usage, create local jobs, and contribute to communities. This initiative comes as a large AI data center project is already under construction in Kenilworth, with some residents expressing opposition.
Governor Mikie Sherrill of New Jersey has unveiled a four-part plan aimed at increasing transparency and accountability for new data centers in the state. Citing data centers as a primary driver of rising electricity prices
—up 20% last summer alone
—Sherrill emphasized the need to regulate the industry. She stated that "big tech" should improve the state's power grid, making it more efficient and reliable, rather than New Jersey residents subsidizing their energy consumption.
The proposed plan includes four key requirements: data centers must cover their own energy costs, report electricity and water usage every six months, create sustainable union jobs for New Jersey residents, and contribute to their local communities. This initiative comes as construction has already commenced on a $1.8-billion, 400,000-square-foot AI data center in Kenilworth.
Local residents in Kenilworth and nearby Union Township expressed mixed reactions to the data center development and the governor's plan. While some, like Lisa Chessa of Kenilworth, supported the regulatory efforts, others, such as Cliff Martello, felt it was "too late" as construction had already begun. Lisa O'Reilly of Union Township suggested data centers might be better suited for less crowded areas like Flemington or Frenchtown. Governor Sherrill intends for New Jersey to set a precedent in controlling data center growth, with her plan now advancing through the state's legislative process.