New Jersey and New York Tighten Data Center Regulations

Lawmakers in New Jersey and New York are implementing new restrictions on data center development to address environmental concerns and utility costs. In New Jersey, Governor Mikie Sherrill signed legislation on Thursday requiring data center operators to report their total and peak daily water and energy usage to the state's Board of Public Utilities. The law aims to increase transparency and prevent energy demands from raising costs for other ratepayers, a move Sherrill described as "flipping the script" on developers.

Simultaneously, New York State Senator Kristen Gonzalez is urging Governor Kathy Hochul to sign the Responsible Data Center Development Act. This bipartisan bill would expand a one-year moratorium on large-scale data centers established by Governor Hochul's Executive Order #62. While the current order targets facilities using 50 MW or more, the proposed bill lowers that threshold to 20 MW and would apply to existing centers. The legislation mandates renewable energy procurement and energy efficiency targets, though the Business Council of New York State argues these requirements are infeasible.

Both efforts reflect growing regional opposition to AI data centers. In New Jersey, advocates at the bill signing called for a total moratorium, citing water stress. In New York, Senator Gonzalez has conducted a statewide tour to highlight community concerns regarding noise pollution and wildlife impacts, arguing that deep environmental impact studies are necessary to understand the full scope of the problem.