Sherrill launches data center proposal
Wants them to pay 'fair share,' invest in towns
By: Katie Sobko
NorthJersey.com
USA Today Network - New Jersey
..... Governor Mikie Sherrill is taking on New Jersey's data centers, launching a four-part initiative she says will make the facilities pay for the energy they use - and require them to invest in Garden State communities.
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Speaking at a Wednesday [05/27/2026] press event at the Statehouse in Trenton, the governor explained that data centers - sometimes warehouse-sized buildings full of computers use by AI platforms like ChatGPT - consume massive amounts of electricity, as well as water to keep the computers and servers cool. the governor outlined a four-part plan to regulate date centers and how they affect New Jersey's strained utility grid.
..... Sherrill's plan includes making data centers "pay their fair share by brining their own energy to the table, operate transparently, add value to the grid and our communities, and support good-paying jobs long-term.
..... "For years, smaller data centers have been scattered in office parks around the state," Sherill said. "Today's [05/27/2026] data centers sometimes use 300 megawatts, enough to power entire towns. That sky-rocking demand is outpacing supply and jacking up all of our electric bills."
..... Sherrill explained that the state's grid operator said data centers were responsible for 70% of the projected increase in demand last year. [2025] New Jersey is home to more than 80 data center facilities.
..... The governor said she is working with legislators to establish rules to protect ratepayers. That would include requiring companies to contract with tier own power generators and pay for gird upgrades needed to handle the increased load.
..... In an effort to increase transparency, Sherrill would require data centers to report their energy and water usage every six months.
..... The governor would also call on the companies to "engage with and invest" in the communities they are joining, depending on what those towns need.
..... The community benefit agreements would require data centers to address issues like noise, light and pollution they generate.
..... "I'm on a mission to drive down energy costs in our state. This is an important part of that," Sherrill said. "It's government doing its job, holding bad actors accountable and shaping the future we want for our kids."
Data centers have been a rising concern across New Jersey
..... Data centers have been a hot-button issue in New Jersey and around the country in recent months as towns and cities protest to stop the construction of facilities in their neighborhoods,
..... A report issued by New Jersey Policy Perspective earlier this year [2026] contends that the "facilities sue large amounts of energy, do not deliver meaningful long-term benefits and cause the state to lose money from subsides and credits."
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Analysts Alex Ambrose and Peter Chen said the state should be proactive to address "hidden risks," as a benefit to small businesses and residents throughout the state.
..... Projections indicate that nearly 10% of the state's electricity usages will be by data centers in the next four years.
..... New Jersey is one of 13 states on the electricity grid operated by PJM Interconnection. It is responsible for energy for a huge swath of the mid-Atlantic and Midwest regions, stretching from New Jersey to North Carolina and from the coast into Illinois, covering about 70 million residents within its service area.
..... Some New Jersey towns have sought to stop construction of data centers. Andover had a resounding turnout against plans to approve one at a recent Township committee meeting, and Millville unanimously approved an ordinance banning data centers.
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It's not just New Jersey pushing back, either. Last year, [2025] the council in Tucson, Arizona, voted against allowing an amazon data center to be connected to the city;s water system. The project had drawn an outcry from residents because of the energy and water it would need to operate.
..... An investigation by Bloomberg News found that about two-thirds of new data centers built or in development since 2022 are in places already gripped by high levels of water stress.
.... Katie Sobko covers the New Jersey Statehouse. Email: sobko@northjersey.com