New Jersey enacts data center reporting law; critics call for statewide ban
New Jersey Governor Mikie Sherrill signed legislation requiring data centers to self-report their water and energy use to the state's Board of Public Utilities. Critics, however, argue the law is insufficient, lacks independent oversight, and fails to address rising utility costs or environmental concerns. Opponents are instead advocating for a statewide moratorium on data center construction.
Governor Mikie Sherrill signed legislation (S3379) on August 27, requiring data center owners and operators in New Jersey to submit semi-annual reports on their water and energy usage to the New Jersey Board of Public Utilities (BPU) for three years. The signing event took place at the South Brunswick Public Library in Monmouth Junction, with the Governor's office stating it fulfills her four guardrails for data center development.
The legislation, co-sponsored by Senate members M. Teresa Ruiz and Raj Mukherji, and Assembly members Michael Venezia, Shama A. Haider, and Rosaura Bagolie, passed with overwhelming support in both the Assembly (76-3) and Senate (39-0). Proponents, including Senator Ruiz and Assemblyman Venezia, emphasize that the bill will provide policymakers with crucial data to protect consumers, manage resources, and ensure sustainable growth without compromising the power grid's reliability or utility affordability.
Despite legislative backing, opponents, led by Ben Dziobek of Climate Revolution Action Network New Jersey (CRAN), criticized the law as "toothless" and ineffective. CRAN argues that the self-reporting mechanism lacks independent verification, sets no limits on resource consumption, and includes carve-outs, particularly regarding state incentives. Critics believe the law does not prevent data centers from increasing residents' utility bills or draining local water supplies, and they are actively advocating for a statewide ban on AI data centers. Jaclyn Rhoads, executive director of the Pinelands Alliance, echoed these concerns, calling for a moratorium to prevent environmental contamination.
CRAN claims that 38 municipalities in New Jersey have already voted to block new data centers, affecting over one million residents. The group asserts that the current legislation "misses the moment" by not imposing stricter controls or a ban.