New Jersey Governor Announces Guardrails for AI Data Centers
New Jersey Governor Mikie Sherrill announced new "guardrails" for AI data centers, proposing legislation to require them to generate their own energy, fund grid upgrades, and publicly report water and energy usage. This statewide initiative follows petitions from community groups for a moratorium on data centers and local bans in some municipalities. The announcement was made in Trenton amidst ongoing concerns about data centers' impact on utility bills and natural resources.
New Jersey Governor Mikie Sherrill, joined by Sen. John Burzichelli, held a news conference in Trenton to announce new "guardrails" for artificial intelligence data centers across the state. The first-term Democratic governor is calling on the New Jersey General Assembly to pass legislation that would mandate data centers to generate their own energy, contract with their own power generators, and pay for necessary electrical grid upgrades.
Governor Sherrill highlighted that modern data centers are a significant driver of increased energy demand, with AI data centers consuming substantially more power than previous generations. She stated that facilities can use up to 300 megawatts, enough to power entire towns, leading to skyrocketing demand that outpaces supply and drives up electric bills. A second proposed bill would require data centers to publicly report their energy and water usage every six months, promoting transparency about resource consumption.
The Governor's announcement comes approximately two weeks after numerous New Jersey-based community and environmental advocacy groups petitioned her office for a moratorium on data center development, citing concerns over utility costs and natural resource depletion. The article also notes that 14 states are currently considering or have considered data center moratoriums, and locally, municipalities like Monroe Township in Gloucester County have already instituted bans. In Kenilworth, Union County, a borough planning board meeting was canceled due to protests against a proposed 400,000-square-foot AI data center.