Nj Data Centers Will Have To Report Energy Water Use Under New Law
New Jersey has enacted a law requiring data centers to report their energy and water consumption semi-annually. Governor Mikie Sherrill also announced new state guidance and assistance to help municipalities negotiate community benefits agreements with data center developers. These measures are part of a broader effort to manage the impact of data center growth on the state's resources and electric grid.
Governor Mikie Sherrill signed new legislation on Thursday mandating that New Jersey data centers report their energy and water usage twice a year to the state Board of Public Utilities. These reports must detail total energy, cooling energy, IT equipment energy, peak daily water use, water sources, and information on both on-site and backup power supplies.
Accompanying the new law, Governor Sherrill also introduced state guidance and assistance programs designed to help municipalities negotiate community benefits agreements with data center developers. These agreements are intended to mitigate project impacts and secure local investments, covering areas such as infrastructure, emergency response, schools, and workforce development. The New Jersey Economic Development Authority, the Board of Public Utilities, and the Department of Environmental Protection are providing online resources and technical support to aid these municipal efforts.
These initiatives are part of a broader state strategy to address the growing demands of data centers on New Jersey's electric grid and other resources. Governor Sherrill previously signed legislation in July that created a new ratepayer class for data centers, requiring them to contribute to new clean energy sources and infrastructure to support their energy needs. The Governor emphasized the importance of local control over development decisions, stating, "Decisions about the future of our community should be made here and not in boardrooms and backrooms in Silicon Valley."