New Jersey data centers pose environmental, electricity cost concerns
Data centers in New Jersey are raising concerns due to their high electricity consumption and significant environmental impact. The PJM grid reports that data centers are responsible for a substantial increase in electricity costs, while environmental experts highlight issues related to water usage, fossil fuel reliance, and potential pollution. A recent diesel spill incident in a Hackensack River tributary underscored these risks.
A recent report from the Environmental and Energy Study Institute highlights that the rapid growth of data centers, particularly those powered by artificial intelligence, in New Jersey could lead to significant economic and environmental issues. PJM grid, the independent market monitor for the region including New Jersey, stated that data centers accounted for 63% of the cost increase in the latest capacity auction, projecting $9.3 billion in higher electric rates over the next decade. There are currently 80 active data centers in New Jersey, with more planned, each requiring approximately 100 megawatts of power, equivalent to powering 80,000 homes.
Beyond energy costs, environmental concerns are growing. Daniel Druckenbrod, a professor of environmental science at Rider University, discussed the "Food-Energy-Water Nexus," emphasizing the interconnected challenges of sustainably managing these resources. He noted that data centers' energy demands, if sourced from fossil fuels, contribute to air pollution and greenhouse gas emissions. A recent computer glitch at a data center led to a 5,000-gallon diesel spill into a tributary of the Hackensack River, illustrating the potential for environmental damage.
Gabriela Smalley, an associate professor in Earth and Chemical Sciences, further explained that AI-powered data centers significantly impact freshwater through direct cooling usage and indirect electricity generation. She warned that changes in water flow and temperature in coastal New Jersey could affect migratory species. Residents are increasingly concerned about water safety, energy costs, and the broad environmental footprint of these facilities across the state.