N.J. Gov. Sherrill signs legislation to make data centers pay for infrastructure, energy
New Jersey Governor Mikie Sherrill signed legislation aimed at protecting ratepayers from electricity costs driven by data centers. The new law creates a separate ratepayer class for data centers and mandates they pay for electrical and clean energy infrastructure upgrades. This initiative seeks to hold utility companies and large data centers accountable for their energy demands.
New Jersey Governor Mikie Sherrill has signed a package of legislation designed to prevent data centers and utility companies from passing the costs of infrastructure expansion and energy usage onto residential ratepayers. The move comes amidst soaring electricity prices and increasing demand from data centers, which PJM Interconnection, the region's electrical grid manager, has cited as a reason for higher bills.
The new law specifically establishes a separate ratepayer class for data centers, ensuring that the financial burden of required electrical and clean energy infrastructure upgrades falls upon them. Governor Sherrill stated that the legislation aims to "put money back into people's pockets" by holding utility companies and large data centers accountable, thereby strengthening the grid and driving down costs. This initiative addresses concerns over "poor oversight, outdated policies, and rising demand on our electric grid by unchecked actors."