Sherrill Unveils Plan to Place Guardrails on Data Centers
Governor Sherrill of New Jersey has announced a comprehensive statewide plan to regulate data centers, focusing on energy demand, resource use, and community impact. The plan aims to establish "guardrails" requiring data centers to invest in clean energy and grid infrastructure, improve transparency on energy and water usage, and ensure community benefits. Proposed legislation supports these goals, mandating energy and water reporting and requiring data centers to contribute to the grid.
Governor Sherrill of New Jersey has unveiled a comprehensive statewide plan designed to regulate the growing data center industry within the state. The initiative, announced today, aims to mitigate the impact of data centers on energy demand, resource consumption, and local communities, while simultaneously positioning New Jersey as a leader in AI innovation.
The plan is structured around four key pillars: establishing "fair-share rules" that compel data centers to bring new clean energy online and invest in grid infrastructure; enhancing transparency by mandating reporting on energy and water usage; developing strong statewide standards for Community Benefits Agreements to address impacts like noise and pollution; and ensuring data centers provide good-paying jobs by leveraging local trades and prevailing wages.
Building on earlier executive orders to freeze rate hikes and expand power generation, Governor Sherrill is collaborating with the state Legislature to advance two key bills. The first bill would require data centers to "bring their own energy and invest in the grid," while the second would mandate state reporting on energy and water consumption. Sherrill highlighted that New Jersey is home to approximately 80 data centers, and these measures are intended to hold them accountable and ensure they contribute fairly to the state's infrastructure and communities.