NJ Senate panel backs bill forcing data centers to use own clean power

The New Jersey Senate has passed a bill that would mandate data centers built in the state to use only renewable or nuclear energy. The bill, sponsored by Democratic Senator Bob Smith, was passed by the Senate Environment and Energy Committee along party lines. The bill is intended to address the increasing electricity demand from data centers, which Senator Smith says is driving up utility bills for New Jersey residents. The legislation would require new data centers powering artificial intelligence or cryptocurrency mining to get their power from sources like solar, wind, hydropower, geothermal, or new nuclear. Data centers would also have to submit their energy sourcing plans to the state Board of Public Utilities for approval. The bill is similar to one that advanced in the previous legislative session but did not gain traction. While the New Jersey Business and Industry Association supports the concept, they asked the committee to only apply the requirements to the largest data centers and to allow for the use of natural gas. However, a representative from the Climate Revolution Action Network argued that the technology exists for data centers to use 100% clean energy. Even if the bill is passed and signed into law by Governor Mikie Sherrill, it may not take effect immediately, as it is written to prevent New Jersey from losing economic development opportunities should data centers decide to locate in neighboring states with less stringent rules. The state legislature also passed a resolution urging other states in the PJM regional power grid to adopt similar legislation.