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NJ Governor Mikie Sherrill Lays Out Plan to Establish Guardrails for Data Centers in Garden State

The plan would require data centers to cover more of their power costs and report water use as lawmakers weigh new statewide rules.

  • On Wednesday, New Jersey Governor Mikie Sherrill announced a four-part strategy in Trenton to regulate data centers, addressing their impact on energy demand, water consumption, and local communities while promoting AI innovation.
  • Data centers accounted for 70% of projected demand growth last year on the regional PJM Interconnection grid, with newer facilities consuming as much as 300 megawatts of electricity, dramatically increasing pressure on ratepayers.
  • The proposal mandates large facilities report energy and water usage every six months and establishes 'fair-share rules' requiring developers to fund grid upgrades and negotiate community benefit agreements addressing noise, light, and pollution.
  • Democratic state Sen. Troy Singleton applauded the announcement and proposed the 'Responsible Data Center Development and Resource Protection Act,' establishing a comprehensive statewide framework for data center siting, utility impacts, water usage, and accountability.
  • While officials emphasized they are not attempting to block AI development, Sherrill said the plan ensures companies 'contribute their fair share' to infrastructure and communities, balancing innovation with accountability and protecting ratepayers.
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NBC Philadelphia broke the news in Philadelphia, United States on Wednesday, May 27, 2026.
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