Your electric bill is soaring — and this may only make it worse

A new report by the progressive think tank New Jersey Policy Perspective has raised alarms regarding the rapidly increasing electricity demand from AI-powered data centers, which they identify as the primary cause behind a 20% spike in New Jersey electric bills by June 2025. The report projects that AI data centers could consume nearly 10% of all electricity in the state by 2030, putting significant pressure on the regional grid operator, PJM Interconnection, and potentially leading to greater reliance on fossil fuel plants and increased grid strain. The report advocates for major policy reforms, including requiring data centers to pay a larger share of their energy costs, mandating transparency in their energy and water usage, and scaling back tax subsidies, such as the $500 million in tax credits offered for AI-related projects in New Jersey. It argues that families and small businesses are effectively subsidizing these facilities through higher utility bills and infrastructure costs. State leaders are actively addressing the situation. Governor Mikie Sherrill has reportedly moved to freeze some utility rate hikes and promote more in-state energy production. However, the report warns that these efforts might be insufficient if the demand from data centers continues to grow unchecked, further impacting ratepayers and the state's energy infrastructure.