Lawmakers back transparency on data center water, electricity use
New Jersey lawmakers are advancing a bill (A4096) that would require data centers to report their electricity and water usage semiannually to the state Board of Public Utilities. Environmental groups support the measure, citing significant resource consumption by these facilities and lack of transparency. The legislation aligns with Governor Mikie Sherrill's agenda for increased data center regulation.
New Jersey lawmakers are moving forward with legislation aimed at increasing transparency regarding data center operations within the state. The Assembly Telecommunications and Utilities Committee unanimously released bill A4096, which mandates semiannual reporting of electricity and water usage by data centers to the state Board of Public Utilities. An identical measure previously passed the Senate with a 34-2 vote.
Environmental advocates, including Kathryn Fisher of the New Jersey League of Conservation Voters and Anjuli Ramos-Busot, chapter director of the New Jersey Sierra Club, testified in support of the bill. They emphasized the need for transparency to understand the environmental impacts and utility grid strain caused by New Jersey's growing number of data centers, which currently stands at 80 with more planned. Concerns were specifically raised about a large DataOne facility under construction in Vineland, where critics say no information has been provided on its projected water and energy consumption.
Governor Mikie Sherrill has also voiced support for increased supervision and regulation of data centers, proposing rules for them to contribute to utility grid infrastructure and address local environmental concerns. Critics highlight that a single data center can consume as much energy as 80,000 homes and use 5 million gallons of water daily, exacerbating issues in farming communities and during droughts.
In a related development, the Millville Board of Commissioners recently rejected a major data center project and subsequently banned all future data center developments, citing concerns over energy affordability.