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Should New Jersey pause AI data center development?

Data centers pull massive amounts of electricity from the power grid and large amounts of water are needed to keep servers cool.

Tom Krosnowski

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May 18, 2026, 6:37 PM

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While some towns in New Jersey consider bans on AI data centers, environmental groups are looking for a similar approach statewide.

News 12 reported on the community opposition to a proposed AI data center in New Brunswick in February. City government rejected those plans after public outcry. Three months later, the site is an inactive construction zone that could perhaps become a public park.

It's an outcome that more than 60 environmental groups are calling for more of across New Jersey - a pause on development until more questions are answered about the impact of these data centers.

The letter - which went out to Gov. Mikie Sherrill (D) Thursday - lists concerns over electricity rates and water conservation. Data centers pull massive amounts of electricity from the power grid and large amounts of water are needed to keep servers cool.

"Can New Jersey have a plan to deal with this new emerging economy, and can we take it at a reasonable pace instead of forcing projects that consume hundreds of thousands of homes' worth of electricity?" asked Ben Dziobek, executive director of Climate Action Revolution and signee of the letter.

News 12 has reported on community concerns from Sussex County (Andover) to Cumberland County (Vineland). There is a planning board meeting scheduled Tuesday in Kenilworth, Union County, where a proposed data center has been the source of local frustration. There is an opposition rally scheduled before the meeting.

A Stockton University poll this month found more than half of New Jersey residents oppose data center construction. Dziobek said it shows this issue isn't political. There's already some difference in how New Jersey's democrat leadership is approaching this issue.

Former Governor Phil Murphy (D) began issuing tax credits to AI companies and data centers in 2024. His successor, Sherrill, is emphasizing balance.

"We're concerned about quality of life for residents," Sherrill said on News 12's "Ask Governor Sherrill" program Thursday. "We're concerned about the environmental impacts, which is why, as we move forward on our data center plan, we are going to really make sure that data centers bring their own power so they're not continuing to increase power costs for New Jerseyans."

Bills to regulate data centers have advanced in the New Jersey legislature, but no state has issued a full data center moratorium yet.

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