Bills addressing energy demand from AI data centers clear committee

The Senate Environment and Energy Committee in New Jersey advanced two bills sponsored by state Senator Bob Smith that aim to address the rising energy demand from AI data centers and cryptocurrency mining facilities. Bill S-680 would require new AI data centers and crypto mining operations to source all their electricity from new renewable or zero-emission sources like solar, wind, hydropower, geothermal, or nuclear power. It would also mandate that these facilities submit an energy usage plan to the state's Board of Public Utilities. Bill SR-18 would urge the District of Columbia and other states in the PJM Interconnection regional grid to implement similar requirements, in an effort to coordinate a regional approach to managing the energy demands of these new technology sectors. The sponsors argue this is necessary to prevent data centers from straining the electricity grid and driving up costs for average consumers and businesses. Senator Smith, who chairs the Environment and Energy Committee, stated the goal is to enable the economic potential of AI data centers while ensuring they do not come "at the expense of New Jersey residents and our environment." Senator McKeon added the clean energy mandate will "help keep electricity demand, and prices, more stable" across the region.