Sherrill rolls out NJ data center regulations

Governor Mikie Sherrill announced New Jersey's first comprehensive statewide framework for regulating the data center industry at a press conference in Trenton. The plan addresses mounting concerns over rising electricity demand, water usage, and local community impacts driven by AI infrastructure. Speaking at the State House, Sherrill emphasized balancing economic opportunity with protections for ratepayers and communities.

The framework, described as the nation's first, centers on four pillars: requiring data centers to fund clean energy generation and grid upgrades, expanding transparency on energy and water usage, creating statewide standards for Community Benefits Agreements (CBA) to mitigate local impacts like noise and light pollution, and mandating the use of local trades and prevailing wage labor. Sherrill highlighted that data centers are the "single biggest driver" of increased energy demand, with PJM attributing 70% of projected demand increases to them last year.

The announcement comes amid growing opposition to data center proposals across New Jersey, with communities like Andover and Pemberton enacting local bans due to resident concerns. A statewide poll found 56% of New Jersey voters support local data center bans. Senator John Burzichelli, who joined Sherrill, noted that lawmakers are actively developing legislation to implement parts of the framework, stressing the need for a balanced approach that supports jobs without increasing utility costs for residents. Michele Siekerka, President and CEO of the New Jersey Business & Industry Association, expressed appreciation for the proactive approach, indicating the industry's welcome in the state while awaiting further details on the parameters.