New Jersey Lawmakers Approve Energy, Data Center Regulations
New Jersey lawmakers approved a legislative package with the 2027 budget, introducing new regulations for data centers. These measures require data centers to report water and energy use and aim to protect non-data-center customers from increased energy costs. Environmental groups have expressed support for these regulations.
New Jersey lawmakers, during a last-minute legislative session accompanying the 2027 budget, passed a package of bills addressing energy affordability and data center regulation. Among the approved legislation is the Power New Jersey Act (S4296), which directs the Board of Public Utilities and the New Jersey Economic Development Authority to secure at least 1,100 megawatts of advanced nuclear energy, aiming to mitigate spiking energy costs.
Another key bill (A8796) mandates that electric public utilities establish special rules for data centers to shield non-data-center customers from higher electricity costs. Additionally, legislation (S3379) was passed requiring data centers to report their water and energy usage to the Board of Public Utilities. These measures were largely supported, though some legislators, like Senator Michael Testa, voted against the consumer protection bill despite being a proponent of data center development, such as the DataOne AI data center in Vineland.
Environmental organizations, including the Natural Resources Defense Council (NRDC) and Evergreen Action, lauded the legislative efforts. The NRDC stated that the consumer protection measure creates a balanced path for data center growth by prioritizing affordability, reliability, and clean energy, requiring operators to bear their fair share of costs and introduce new clean energy resources. Activists believe New Jersey could set a national precedent for managing data center development challenges. Governor Sherrill is expected to sign most of the legislation into law.