AI Data Centers Blamed for New Jersey Electric Bill Surge

A new report by New Jersey Policy Perspective indicates that the proliferation of artificial intelligence (AI) data centers is the primary reason behind a 20 percent surge in New Jersey household utility bills last June, according to an iHeart news report. The study highlights that these data centers, with up to 80 facilities primarily located north of Trenton, could account for nearly 10 percent of the state's total electricity use by 2030. Residents are facing substantial utility rate hikes, increased water usage, and local air pollution concerns, including constant noise from an under-construction 2.6 million-square-foot data center in Vineland, Cumberland County. Federal data and statements from regional grid operator PJM support the claim that AI data center demand is a key driver of rising energy costs. While industry groups like the Data Center Coalition assert their compliance with environmental rules, the New Jersey Policy Perspective report advocates for greater oversight and transparency, including public reporting on energy and water consumption. Environmental concerns also cite that these large data centers often prolong the operation of polluting power plants. In response to growing public and environmental pressure, local governments are taking action. Monroe Township in Gloucester County, for example, has introduced an ordinance to potentially ban new data centers. Governor Mikie Sherrill has committed to addressing energy costs by freezing some utility rates and calling for more investment in energy production. State lawmakers are currently evaluating new oversight policies as communities weigh the economic benefits against public health and environmental impacts.