'We Are Drawing The Line': Sherrill Vows To Balance Local Interests With Big Tech Data Center Growth

News Clip4:34Forbes Breaking News·NJ·8/27/2026

New Jersey Governor Mikie Sherrill announced a comprehensive plan to help local communities negotiate with data center developers. The plan aims to ensure fair deals, prevent excessive water and power usage, and require data centers to invest in the state's aging power grid to avoid increasing utility costs for residents. The initiative emphasizes local control and accountability for data center commitments.

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Gov: New Jersey State Government, New Jersey Governor's Office, New Jersey Local Governments

During a press conference, New Jersey Governor Mikie Sherrill announced a "comprehensive plan" to balance the interests of local communities with the growth of data centers across the state. Governor Sherrill stated that the state will support towns in negotiating with "big tech" companies to ensure that communities are not disadvantaged, preventing excessive water or power usage, and ensuring that data centers drive down utility costs rather than increasing them.

The plan emphasizes strong local control, allowing individual towns to decide whether data center development is appropriate for their area. For communities that choose to move forward, the state will provide expertise to ensure they understand the negotiation process and achieve favorable outcomes. Governor Sherrill highlighted that New Jersey is proactively addressing potential issues, unlike other states where unchecked data center development has led to utility cost crises.

Key components of the plan include holding data centers accountable for reporting their water and energy uses, requiring them to bring their own power to avoid burdening the existing grid, and mandating investments in New Jersey's aging power infrastructure. This strategy aims to leverage data center development as an opportunity to upgrade the state's grid, potentially saving billions of dollars in infrastructure costs and providing benefits to communities.