NJ bill would charge data centers more for electricity
By: Katie Sobko
NorthJersey.com
USA Today Network - New Jersey
..... A bill that would make data centers pay a tariff for their impact on New Jersey's stretched energy grid is on its way to Governor Phil Murphy's desk.
.....
Seen as a way to help protect ratepayers from skyrocketing prices because of increased electricity demand on the gird, the bill would require data center owners to pay a tariff on their utilities in an effort to keep costs form increasing for other ratepayers. The legislation passed both houses of the Legislature on January 12. [2026]
..... "It's become very clear to us, because we've done hearings on the PJM grid - and how their auction process has gotten skewed by these data centers, whether they're coming or just proposed - [that they are] then reserving power for [data centers]," said state Senator John Burzichelli, a Gloucester County Democrat and one of the bill's sponsors.
..... Burzichelli said data centers - proposed, in construction or Online - are creating excessive demands on New Jersey's power grid that amount to costs being passed on to homeowners and other ratepayers. He noted that this is a regional concern that also affects ratepayers in neighboring states, including Pennsylvania and Delaware.
..... Data centers "are obviously needed, but because of how they need power, they have to be treated differently," the senator said. "It's not fair for homeowners to subsidize Amazon and the big heavyweight that are putting data centers in."
.....
Advocates spoke out in support of the bill throughout the committee process. Alex Ambrose, an analyst for New Jersey Policy Perspective,s aid the measure would help protect residents form the financial implications of data centers.
..... "Having affordable energy is essential, not just for regular ratepayers, but also for small businesses," she said. "AI data centers accounted for 70% of the increase in projected demand in the 2025/2026 PJM auction."
..... Ambrose also said that in addition to straining the grid, the data centers don't provide jobs or affect the community in a positive way. If singed by Murphy, the legislation would require each electric utility in New Jersey to develop and submit to the Board of Public Utilities a plan to tariff certain data centers, specifically those with a maximum monthly demand of at least 100 megawatts.
..... The tariff would be implemented to help protect other ratepayers from any increased costs related to demand caused by data centers and would help incentive data centers to be more energy efficient, the bill's proponents said.
..... The law would go into effect a year after it is enacted.
..... Katie Sobko covers the New Jersey Statehouse. Email: soblo@northjersey.com