New Jersey data centers now report water and power use every six months under new law

New Jersey Governor Mikie Sherrill signed a new law (S3379) on Thursday, requiring all data centers in the state to report their electricity and water usage to the Board of Public Utilities every six months. The legislation, which passed unanimously in the State Senate, mandates detailed reports on total energy consumption, energy used for cooling and information technology equipment, peak daily water use, water sources, and on-site and backup power supplies.

Governor Sherrill stated that this initiative is part of her efforts to enhance affordability in New Jersey by empowering communities and ensuring data centers comply with state regulations. She also previously signed a law to reclassify AI data centers as a distinct ratepayer class, ensuring they bear the full cost of their electricity consumption.

The new transparency measures coincide with widespread local opposition to data center development across the state. Nearly 40 New Jersey towns have already enacted bans on the construction of new AI data centers, citing concerns about rising electric bills, which have been partially attributed to these power-hungry facilities. For instance, the Manchester Township council is scheduled to hold a final vote on a data center ban on September 14, 2026. Some facilities, such as the One Data center in Vineland, are projected to consume up to 300 MW of power.

In related developments, the Department of Community Affairs recently released new guidance for local officials on how to negotiate with data center developers. This guidance outlines considerations for evaluating a data center's impact on local infrastructure, resources, and emergency services, and recommends that developers invest in community improvements like public infrastructure, blight remediation, and schools.