New Jersey Pushes New Oversight for AI Data Centers

May 29, 2026 – New Jersey unveiled Wednesday a plan to more closely regulate artificial intelligence data centers.

Gov. Mikie Sherrill , a Democrat in her first year, announced the four-part proposal at the Statehouse in Trenton, citing mounting concerns over electricity costs, water usage and lack of community transparency across New Jersey.

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Under the plan, data centers would be required to fund their own infrastructure upgrades, publicly disclose energy and water usage, and meet community standards on noise, light and pollution.

“Today, AI is driving an explosion in the construction of even bigger centers nationwide,” Sherrill said. “There are real concerns about their impact on our energy bills, our water supply, our quality of life. And there are worries that growth is happening without transparency or concern for our communities.”

The announcement comes as backlash against data centers has intensified across New Jersey. Federal data shows the state experienced some of the sharpest electricity price increases in the country last year, with average annual utility bills rising by about $260 per household. Regional grid operator PJM Interconnection has said growing AI and data center demand is straining the electric grid.

Roughly 80 data centers operate across New Jersey. Industry representatives argue the sector supports more than 96,000 jobs and contributed more than $17 billion to the state's economy in 2023, according to the Data Center Coalition, a trade group representing the industry.

Sherrill has rejected calls from a coalition of more than 60 New Jersey organizations for a moratorium on data center construction.

“We are not going to be beholden to Big Tech,” she said. “We are going to chart our path forward here in New Jersey.”

The proposal aligns with several data center bills already advancing in the state legislature.