New Jersey Shifts From Data Center Incentives to Electricity, Water and Environmental Safeguards
New Jersey first authorized up to $500 million in tax credits to attract artificial intelligence companies and large-scale data centers, including a $250 million award approved for CoreWeave. The state later adopted measures addressing data center electricity costs, water and energy reporting, environmental impacts and community protections, while eliminating the remaining $250 million in unused tax-credit authorization.
New Jersey created the Next New Jersey program in 2024 to attract artificial intelligence investment, making up to $500 million in tax credits available for qualifying projects. The New Jersey Economic Development Authority later approved a $250 million award for CoreWeave, whose proposed campus was described as a roughly 392,600-square-foot, $1.8 billion facility that could require up to 250 megawatts of electricity.
The article contrasts that incentive-driven policy with subsequent state actions addressing data center impacts. Measures signed by Gov. Mikie Sherrill established a separate electricity rate structure for data centers, required operators to report water and energy use, and removed the remaining $250 million in tax-credit authorization. The article also notes local opposition and restrictions in communities including Harrison Township, Logan Township and Millville, while industry representatives argue that data centers provide jobs, investment and essential digital infrastructure.