New Jersey Stepping up to Establish Data Center Guardrails

Governor Sherrill and State Legislature Announce Policy Platform

TRENTON, NJ (May 27, 2026) – Gov. Mikie Sherrill and state legislators outlined a promising platform today proposing protections for New Jerseyans, and their water and electricity resources, from potential data center development impacts.

Following is a statement by Jackson Morris, director, State Power Sector at NRDC (Natural Resources Defense Council):

“Today’s announcement from the Governor and New Jersey lawmakers demonstrates that they are serious about ensuring data centers don’t spike bills for families and small businesses, or result in harms to communities, as we have seen when smart guardrails are absent.

“The governor and legislature now need to adopt the necessary laws and regulations to ensure that whenever data centers are built, they pay their fair share, invest in new clean energy and more responsibly use the state’s water resources, create good family-sustaining jobs, and protect communities. Doing so would make New Jersey a national leader on this front.”

The Governor’s proposed pillars comprise:

• Consumer protections: Ensure data centers pay their fair share, and do not shift costs to other ratepayers
• Accountability & Transparency: Require reporting of water and electricity use
• Investing in Communities: Support municipalities that wish to pursue Community Benefit Agreements
• Good jobs: Establish strong labor standards for data center construction projects