Sherrill unveils statewide plan to regulate data centers in New Jersey
New Jersey Governor Mikie Sherrill has announced a statewide plan to regulate data centers, aiming to address their impact on the energy grid, water use, and communities. The plan focuses on infrastructure contributions, transparency, and community benefits. Environmental groups, however, criticize the proposal as insufficient and are calling for a full moratorium on new data center construction.
New Jersey Governor Mikie Sherrill announced a comprehensive statewide plan on May 27 at the State House in Trenton, aimed at regulating the growing data center industry within the state. The initiative seeks to mitigate the impact of data centers on New Jersey's energy grid, water resources, and local communities, while simultaneously positioning the state for leadership in artificial intelligence innovation. Key components of the proposal include mandating data centers to contribute to new clean energy generation and grid infrastructure upgrades, ensuring costs are not borne solely by residents.
The plan also emphasizes transparency, requiring large-scale facilities to report their energy and water consumption. Additionally, it proposes statewide standards for Community Benefits Agreements, offering municipalities resources to negotiate with developers on issues like light, noise, and pollution, and ensuring local investments. Governor Sherrill highlighted the plan's alignment with her broader affordability agenda, which includes efforts to lower energy costs and manage electricity demand.
While business groups, represented by Michele Siekerka of the New Jersey Business & Industry Association, largely welcomed the proactive approach, environmental organizations expressed strong dissatisfaction. Groups like Food & Water Watch, led by State Director Matt Smith, argue the plan does not go far enough and reiterated calls for a full, three-year moratorium on new data centers larger than 20 megawatts. Environmental activist Jeff Tittel, a Jersey Vindicator columnist, echoed these sentiments, stressing the need for stronger regulations to address potential environmental hazards and infrastructure strain before further development proceeds.
Opponents cite concerns over electricity consumption, water use, toxic chemicals, noise pollution, and the need for stricter oversight. They advocate for measures such as banning new fossil-fuel plants for AI facilities, restricting siting in environmental justice areas, and requiring new facilities to run on renewable energy. A recent Stockton University poll indicating 56% voter support for local data center bans underscores the growing public opposition.