New Jersey Governor Mikie Sherrill lays out plan to establish guardrails for data centers in Garden State

New Jersey Governor Mikie Sherrill lays out plan to establish guardrails for data centers in Garden State

News Clip6abc Philadelphia·NJ·5/27/2026

New Jersey Governor Mikie Sherrill unveiled a four-part plan to regulate data centers, aiming for accountability and AI innovation leadership. The plan mandates data centers pay for energy, operate transparently, add community value, support local jobs, and contribute to clean energy and grid infrastructure while reporting energy and water costs.

governmentelectricitywater
Gov: New Jersey Governor's Office, New Jersey State Government

New Jersey Governor Mikie Sherrill announced a comprehensive four-part plan to establish regulations, or "guardrails," for data centers operating within the state. Unveiled in Trenton, the initiative aims to hold data centers accountable for their operations while simultaneously positioning New Jersey as a leader in AI innovation. Governor Sherrill emphasized that this is the first holistic plan of its kind, contrasting it with other states' piecemeal approaches.

The core tenets of the plan include requiring data centers to fully cover their energy costs and ensure they bring new clean energy sources to the state, thereby contributing to grid infrastructure. These "fair-share rules" are intended to help keep utility bills stable for New Jersey residents. Furthermore, the proposed regulations would mandate transparency in operations, requiring data centers to report their energy and water usage. The plan also seeks to ensure that data centers provide tangible value to local communities by addressing concerns such as noise, light, and pollution, and by prioritizing local hiring at standard wages for long-term, good-paying jobs.