Gov. Sherrill says New Jersey will crack down, but not ban, data centers spiking your electric bills

⚡ Gov. Mikie Sherrill wants new data centers to pay for their own power and grid upgrades.

➡️ Governor advocates for 'guardrails,' not a moratorium on data center projects.

🔴 Environmental groups and residents worry that new projects also strain water resources and produce pollution.

TRENTON — New Jersey officials will focus on stopping data center projects from hooking up to the existing electric grid and spiking average ratepayers’ bills.

A Wednesday announcement from Gov. Mikie Sherrill was far from a halt or moratorium on data center construction, which has been the goal of a growing number of worried residents and environmental advocates.

“Today’s data centers sometimes use 300 megawatts, enough to power entire towns. That skyrocketing demand is outpacing supply and jacking up all of our electric bills,“ Sherrill said. “Not on my watch, not on your backs.”

Sherrill was joined by two Democratic lawmakers, a Republican mayor, and officials from the New Jersey Chapter of the Sierra Club and the International Brotherhood of Electrical Workers Local 102.

The unified front appeared to be aimed at quelling the recent flare-up of public criticism of new data center construction.

Vociferous objections recently derailed a potential proposal in Sussex County’s Andover Township.

“We are ready to innovate, to power the jobs of the future. We can’t do that if we let bad actors drain our resources and stick our communities with the bill,” Sherrill said from a podium bearing a sign that read, “Guardrails on Data Centers.”

“But, if we work together; if we make sure that data centers pay their fair share, operate transparently, engage with our communities — we can lower costs and open the doors of opportunity for everyone,” she said.

Vineland lawsuit adds to pressure over data center impacts

Sherrill’s “Guardrails for Data Centers” outline comes a day after a federal lawsuit was filed by two Vineland residents over nuisance claims around the expanding Data One AI data center in the city.

Two local residents say the operator failed to pursue necessary sound-dampening barriers that would have quieted the persistent humming of generators and cooling equipment — that the complaint says literally keeps their families up at night.

Read More: New Jersey list of local bans on AI data centers keeps growing

New Jersey wants AI data centers to pay their own way

Sherrill and other officials at the Trenton press conference confirmed that there are roughly 80 data centers already up and running statewide — though about 70 of them are older facilities that have been around for more than 20 years.

Smaller data centers do not present nearly the same massive drain on utilities and resources as newer, high-density facilities that support the rise in artificial intelligence capabilities.

Sherrill said her administration will work with lawmakers to require data center operators to bring their energy to the grid, “contracting with their own power generators and paying for the grid upgrades needed to handle the larger load.”

Read More: Andover Township moves to ban data centers after meeting chaos

Read More: East Windsor data center expansion draws public opposition

Residents and environmental groups push back on expansion

State Sen. John Burzichelli, D-Gloucester, said New Jersey has to embrace technology and not become "an Amish community," but it has to "get it right."

Assemblyman David Bailey Jr., D-Gloucester, said his elderly mother has been crushed by rising electricity costs.

Mount Arlington Mayor Michael Stanzilis, a Republican, said “data centers are becoming an essential infrastructure for our entire economy,” but state and federal governments need to keep up with the infrastructure to support  them.

New Jersey Chapter of the Sierra Club State Director Anjuli Ramos-Busot said she too is concerned with recent rising energy costs. Ramos-Busot did not comment about other resources required by high-density data centers, such as water for cooling systems, or a potential spike in pollution from such sites.

In recent weeks, Pinelands Alliance has led a public effort pressing Sherrill to put a hold on any new data center projects.

“A new generation of hyperscale data centers is being constructed across the country that requires enormous amounts of electricity and water,” according to an online petition by the environmental organization.

The push to halt any new construction is viewed as a chance for “policymakers and residents time to study impacts, develop clear standards, and protect communities. “

“South Jersey is particularly vulnerable to these threats because much of it sits atop the Kirkwood-Cohansey aquifer—a critical source of drinking water that also sustains streams, wetlands, and wildlife habitats,” Pinelands Alliance said in its petition.

Read More: NJ data center bans grow as towns push back on AI projects

New Jersey Business and Industry Association President and CEO Michele Siekerka said Sherrill's comments on Wednesday are "a signal that this growing and critical industry is welcome in the Garden State."

Pinelands Alliance also released a statement in reaction to the plan, saying "The Alliance appreciates the Governor’s attempt to protect New Jersey residents from the increasing rates of energy use, but energy is NOT the only problem."

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