New Jersey Passes Trailblazing Data Center Legislation, Governor Sherrill Expected to Sign Into Law
Bill will protect consumers from data center costs and require that they bring their own clean energy
TRENTON, NJ – The New Jersey legislature passed S731/A796, a bill that would ensure electricity remains affordable, reliable, and increasingly clean as data centers come online. The bill, which will now move to the Governor's office to be signed into law, requires that large data centers meet new criteria designed to protect ratepayers, strengthen grid reliability, and accelerate construction of new clean energy resources.
The following statement is from Dawone Robinson, managing director, Place-Based Advocacy, Climate & Energy, at NRDC (Natural Resources Defense Council):
“The bill charts a balanced path forward for data center growth in New Jersey by prioritizing affordability, reliability, and clean energy. It makes clear that data center operators that seek to build in the state must be responsible for their fair share of costs, and advance projects that bring their own new, clean energy resources.
“Importantly, the bill requires data centers to reduce or shift energy use during periods of high demand and stress on the grid. Establishing this kind of framework will deliver cost savings to households faster and more effectively – and ensures any ‘bring your own capacity’ framework adopted by PJM will support New Jersey’s climate targets.
“Pairing strong consumer protections with incentives for clean energy investments ensures data centers will not jeopardize New Jersey's electricity affordability, reliability, and decarbonization targets. When Governor Sherrill signs this bill, it will help move forward her affordability and clean energy agenda.”
NRDC (Natural Resources Defense Council) is an international nonprofit environmental organization with more than 3 million members and online activists. Established in 1970, NRDC uses science, policy, law and people power to confront the climate crisis, protect public health, and safeguard nature. NRDC has offices in New York City, Washington, D.C., Los Angeles, San Francisco, Chicago, Beijing and Delhi (an office of NRDC India Pvt. Ltd).