Data center expansion sparks push for stricter rules and local investment requirements
Gov. Mikie Sherrill unveiled a four-part plan aimed at setting new rules, or “guardrails,” for the expanding industry.
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New Jersey is moving to tighten oversight on the growing number of data centers as communities raise concerns.
Gov. Mikie Sherrill unveiled a four-part plan aimed at setting new rules, or “guardrails,” for the expanding industry.
The announcement comes as more towns push back against proposed data center projects.
State officials say there are already more than 80 data centers operating in New Jersey.
Under the proposal, four key changes would be required:
Pay their own energy costs:
Data centers would be required to cover the full cost of the electricity they use. The governor says their demand is a major factor behind rising utility rates.
Improve transparency:
Companies would have to report how much electricity and water they use every six months.
Invest in communities:
Developers would be expected to support local communities, such as funding parks, recreation spaces or school resources.
Create good-paying jobs:
Projects would need to generate stable, well-paying union jobs for New Jersey residents.
State officials say the goal is to balance economic growth with community impact.
They also say demand for data centers continues to grow, and New Jersey must act or risk losing development to other states.
The proposal now heads to the state legislature for consideration.
