Legislation holding data centers accountable for water, energy use passes Senate

The New Jersey State Senate has passed legislation (S-3379) sponsored by Senate Majority Leader M. Teresa Ruiz and Senator Raj Mukherji, which will mandate data center operators to submit semi-annual water and energy usage reports to the Board of Public Utilities (BPU) over a three-year period. This bill seeks to give policymakers the necessary information to protect consumers and manage state resources responsibly, especially in light of concerns about rising electricity bills and environmental impact. Senator Ruiz, representing Essex and Hudson counties, emphasized that while New Jersey is an innovation hub, growth cannot come at the expense of residents' finances or the environment. She stated the bill is a "commonsense measure" to ensure sustainable growth without compromising the power grid's reliability or the affordability of utility bills. Senator Mukherji, also from Hudson, added that monitoring usage will hold the industry accountable to ratepayers and the environment. The legislation requires specific data on energy and water usage, with additional reporting for data centers receiving state financial incentives to demonstrate progress toward sustainability goals. The BPU will publish aggregated summaries of this data to maintain confidentiality, and will evaluate whether to extend the reporting requirement after the initial three-year period. The move comes as an InvestorsObserver report indicated New Jersey's electric bills climbed 55% between 2020-2025, the sixth-highest rate nationally, partly attributed to exploding tech demand.