Here's Where Secaucus' Newest Data Center Will Go
CoreSite plans to open a new AI data center in Secaucus, New Jersey, at 215 County Avenue, which is currently undergoing an approval process. The proposed facility is expected to gain local approval, though it has spurred broader discussions about the impact of data centers on New Jersey's electricity grid and rising utility bills. The state has enacted a new law, the Data Center Fair Share law, to ensure data centers pay a higher rate for electricity and associated grid infrastructure costs.
CoreSite is proposing a new AI data center at 215 County Avenue in Secaucus, New Jersey, in a vacant building previously occupied by a printing company. If approved, this would be CoreSite's second data center in the town. The approval process involves the New Jersey Sports & Exposition Authority, which has significant control over land use in Secaucus, followed by the Secaucus Planning Board.
Secaucus Mayor Mike Gonnelli expressed strong support for the project, noting that data centers are already permitted under existing land-use rules and contribute significantly to local tax revenue, which funds public services. He indicated that rejection of CoreSite's application would likely lead to a successful lawsuit against the town. Secaucus is already a hub for data centers, with major players like Equinix, H5, and Evocative operating facilities there.
The article also delves into the broader issue of data centers' impact on electricity bills in New Jersey. PJM Interconnection, which manages the electrical grid for 13 states including New Jersey, has seen increased demand due to data center growth, leading to higher electricity purchasing costs and utility infrastructure upgrades by companies like PSE&G, which are passed on to consumers. New Jersey's residential electric rates have risen by nearly 30 percent since 2024.
To address these concerns, New Jersey Governor Mikie Sherrill has championed the new Data Center Fair Share law, enacted this summer. This law establishes a separate rate structure for large data centers to ensure they cover their own energy and grid infrastructure costs, preventing them from being subsidized by other customers. While environmental groups like the NJ Sierra Club raise concerns about pollution and noise, citing a recent 5,000-gallon diesel leak at an Equinix facility, experts like Neil Osnato of Persistence Analytics Group emphasize the complex, location-specific nature of data centers' impact on electricity costs.