New Jersey Governor Signs Data Center Disclosure Bill, Ends Tax Credit Program
New Jersey Governor Rebecca Sherrill signed legislation requiring data center developers to disclose water and energy consumption every six months, while simultaneously ending a $500 million tax credit program from the previous administration. Critics argue the new law is insufficient, providing merely a receipt rather than effective "guardrails" against resource strain. The move comes after years of public pressure and local opposition to data center construction.
Governor Rebecca Sherrill of New Jersey recently signed legislation requiring data center developers to disclose their water and energy consumption biannually. The new law simultaneously terminates a $500 million tax credit program, previously established by former Governor Phil Murphy, which aimed to attract artificial intelligence companies to the state. This move signals a significant shift from the previous administration's approach of incentivizing the data center industry.
The legislation mandates that operators report total energy usage, cooling and IT consumption, peak daily water draw, water sources, and backup power supplies to the state Board of Public Utilities. However, critics, including Jaclyn Rhoads of the Pinelands Alliance and Dena Mottola Jaborska of New Jersey Citizen Action, argue that the law is a "smokescreen" and lacks "guardrails" because it doesn't halt development or include independent verification, and much of the reported data may be shielded from public access under the state’s Open Public Records Act.
Activists from groups like the Climate Revolution Action Network New Jersey (CRAN) protested the bill signing in South Brunswick, advocating for real restrictions on data center development, citing strain on the electric grid and water supply. Ben Dziobek, Executive Director of CRAN, noted that many towns are already blocking data center construction due to concerns about high utility bills and resource depletion. Governor Sherrill, while acknowledging public concerns and offering new guidance for towns to negotiate community benefits agreements, has pushed back against calls for a statewide moratorium, stating that data centers "will play by our rules."