Governor Sherrill today unveiled a comprehensive statewide plan to address the escalating impact of data centers on New Jersey's energy demand, resource use, and local communities, while simultaneously positioning the state as a leader in AI innovation.
The plan establishes robust "guardrails" to ensure data centers are accountable, contribute to energy infrastructure, and provide good-paying jobs. Key pillars include fair-share rules for new clean energy and grid contributions, improved transparency through energy and water use reporting, and statewide standards for Community Benefits Agreements. These agreements will help municipalities negotiate effectively to address local impacts like light, noise, and pollution, while securing meaningful local investments.
"Data centers are among the biggest drivers of energy costs, which I am working tirelessly to bring down," said Governor Sherrill. "By establishing these guardrails, we will hold data centers accountable, ensure they contribute their fair share, and make sure our communities not only benefit from the AI innovation happening in our state, but have a real hand in shaping it." The initiative also aims to deliver good-paying jobs by leveraging local trades and prevailing wages.
This plan builds on the Administration's broader affordability agenda, which includes previous actions like Executive Orders No. 1 and 2 to freeze rate hikes and expand power generation. The administration has also approved large-scale solar and battery storage projects, expanded community solar, and signed legislation to accelerate battery storage and lift the moratorium on new nuclear energy.