Governor Mikie Sherrill today announced the completion of her comprehensive four-pillar data center plan, signing legislation to enhance transparency regarding energy and water usage and unveiling statewide guidance for municipalities to negotiate robust community benefits agreements (CBAs). These actions, alongside previously enacted clean energy requirements, aim to empower New Jersey communities and ensure data centers contribute fairly to the state's infrastructure and economy.
The newly signed legislation (S3379/A4096) mandates that data center owners and operators submit semiannual reports to the New Jersey Board of Public Utilities (NJBPU). These reports will detail total energy consumption, energy used for cooling and information technology equipment, peak daily water use, water sources, and on-site and backup power supplies, providing crucial transparency into their demands on state resources.
Furthermore, the Department of Community Affairs (DCA) has issued new statewide guidance on CBAs, equipping municipalities with tools to negotiate effectively with data center developers. This guidance covers evaluating impacts on local infrastructure, assessing emergency response needs, and securing tangible community investments such as public infrastructure improvements, blight remediation, schools, and workforce development programs. The Economic Development Authority (EDA), Department of Environmental Protection (DEP), and BPU have also established technical assistance teams to support communities.
These steps follow the July signing of nation-leading legislation (S731/A796) that requires data centers to utilize their own clean energy and establishes a separate rate class, shielding other ratepayers from increased energy costs. The plan also includes guidance on state labor standards, promoting prevailing wages and project labor agreements for data center projects.
Governor Sherrill emphasized the plan's impact, saying, "At the beginning of this summer, I announced the most comprehensive data center plan in the nation to establish strong guardrails and hold data centers accountable. Just three months later, I am delivering on all four pillars of that plan -- taking action so that towns across New Jersey know we have their backs. I am laser focused on driving down costs and making sure our state is more affordable. When it comes to data centers, we're doing that by putting power back in the hands of communities and ensuring data centers play by our rules -- paying their fair share for energy and contributing to the grid, being transparent about their energy and water usage, making meaningful investments in communities, and bringing good union jobs when they are building." South Brunswick Mayor Charlie Carley added, "Today, we are putting power back in the hands of communities and giving places like South Brunswick a real say in what comes next. Community benefit agreements offer us the tools to hold data centers accountable and protect our residents, while ensuring our community isn't left out of the innovation and economic opportunity they can bring."
This comprehensive framework, developed in just three months, positions New Jersey as a national leader in managing the rapid growth of data centers, ensuring accountability and community benefits while fostering AI innovation.