The recent legislation signed by Gov. Mikie Sherrill in New Jersey mandates data centers to disclose their energy and water consumption to the New Jersey Board of Public Utilities biannually. This requirement aims to address the increasing demands that data centers place on local resources and infrastructure.
Key Points:
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Reporting Requirements: Data centers must report total energy usage, including for cooling and IT equipment, and daily water consumption sourced from public systems, groundwater, or surface water.
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Public Access: The Board of Public Utilities will publish this information online, enhancing transparency and allowing residents and officials to understand the resource demands of these facilities.
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Community Support: The state is providing guidance for municipalities to negotiate community benefits agreements with developers, ensuring that local impacts and investments are addressed. This includes considerations for infrastructure, emergency response needs, and education.
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Assessment of Industry Impact: The initiative responds to the rising prominence of artificial intelligence and cloud computing, which significantly increase demand for data centers. Assemblyman Michael Venezia highlighted the necessity for clear, state-specific data to understand these impacts.
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Broader Data Center Policy: This legislation complements previous efforts, including a new utility rate class for data centers to ensure they contribute equitably to costs related to their electrical demands.
The law represents a proactive approach to managing the growth of data centers while empowering communities to mitigate potential negative impacts.
