New Jersey signs bills forcing data centers to fund grid upgrades

Governor Mikie Sherrill signed three New Jersey bills aimed at large AI‑driven data centers. The legislation requires facilities using 50‑100 megawatts or more to finance grid infrastructure upgrades, provide financial guarantees covering at least 85% of their projected electricity demand for ten years, and source renewable power while reducing peak‑hour demand. It also mandates semi‑annual water and energy usage reports to be made public.

The measures are intended to shield residential customers from rising electricity costs tied to the state's aging grid and the growing PJM‑wide demand from data centers. Additional provisions remove a utility earnings add‑on for participation in regional transmission organizations and tighten state review of certain transmission projects, offering a potential model for other states.