NJ data centers must now reveal how much power and water they use

⚡ New Jersey data centers must report electricity and water usage to the BPU every six months.

💧 Reports will detail cooling, peak water use, power supplies and other resource demands.

🏘️ The law comes as nearly 40 NJ towns have banned new AI data centers over local concerns.

New Jersey data centers will have to reveal how much electricity and water they use under a new transparency law.

Gov. Mikie Sherrill signed the legislation Thursday, requiring every data center in the state to report its water and electricity usage to the Board of Public Utilities every six months. The bill (S3379) passed unanimously in the state Senate.

The semiannual reports will include:

⚡ Total energy consumption;
⚡ energy used for cooling and information technology equipment;
⚡ peak daily water use;
⚡ water sources; and
⚡ on-site and backup power supplies. 

Sherrill said it was part of her effort to make New Jersey 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," Sherrill said.

Gov. Mikie Sherrill signs S3379 at the South Brunswick Public Library in South Brunswick on Thursday, Aug. 27, 2026. (Office of Governor/Tim Larsen)

Nearly 40 NJ towns have banned new AI data centers

It comes as nearly 40 New Jersey towns have banned the construction of new AI data centers. More towns are expected to enact bans; the Manchester Township council has a final vote scheduled for Sept. 14, 2026.

The bans are a sweeping response to electric bill hikes, which have been partially blamed on new data centers that power artificial intelligence. Some of these power-hungry facilities, including One Data in Vineland, will consume 300 MW of power — the same energy produced by a typical small modular nuclear reactor.

Last month, Sherrill signed a law to ensure AI data centers pay for the electricity they use. It puts these facilities into their own class of ratepayers, separate from residents and other businesses.

An Amazon Web Services data center

NJ towns can ask data centers to invest locally

For towns that haven't yet banned data centers, the Department of Community Affairs has released new guidance on negotiating with developers.

Released on Tuesday, the guidance also includes considerations that local officials should take into account when evaluating data centers' impacts on local infrastructure, resources, and emergency response needs.

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It recommends that local officials ask these data centers to invest in the communities where they're built, including public infrastructure projects, blight remediation, schools, and more. There's also information on state labor laws and labor agreement requirements.

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