Data centers in New Jersey

📜 State laws

Law P.L.2026, c.32: data centers must pay their own grid costs (A796/S731) · July 7, 2026
Governor Sherrill signed this law on July 7, 2026. By about July 2027, the Board of Public Utilities (BPU) must set rules for big data centers in each electric utility's area, with public input. 'Big' is set by the BPU but can be no higher than 50 megawatts, and data centers that share an owner, site or equipment count as one. The rules must make sure other customers do not pay costs caused by big data centers, including new power lines, substations and power plants. Data centers must promise to pay for at least 85% of the power they ask for over 10 years and post deposits, so others don't pay if they leave. In a grid emergency, big data centers must be cut before homes. Within 180 days after the BPU sets the rules, each utility must ask for a separate data center rate. Source

Law P.L.2026, c.75: data centers must report energy and water use (S3379/A4096) · Aug 27, 2026
Governor Sherrill signed this law on August 27, 2026. Data center owners must send the BPU a water and energy use report twice a year for three years (the BPU can make it permanent). Reports include energy use, peak daily water use, and where the water comes from. Data centers open at least a year must file within 3 months; others within 6 months. The BPU must post the basic energy and water numbers on its website within 30 days. Some performance details stay confidential. Data centers must tell the BPU 60 days before a big change. Source

Law P.L.2025, c.335: prevailing wage on data center construction · Jan 20, 2026
Signed January 20, 2026. Data center construction that starts on or after March 1, 2026 must pay prevailing wages if the data center is designed to use 5 megawatts or more. Contractors must be registered and follow safety and training rules. Projects of 25 megawatts or more may use a project labor agreement. Source

Bill S4304 / A2774: ban secret deals (NDAs) for data centers (pending) · Oct 1, 2026
This bill would make secret deals (NDAs) between data center applicants and town boards, or with the people selling the land, illegal and unenforceable. Applicants would have to swear they made no such deal, and towns could not approve plans if they did. S4304 was approved by the Senate Community and Urban Affairs Committee on October 1, 2026. A2774 has sat in an Assembly committee since January 13, 2026. Not law yet. Source

Bill A5482: six-month pause on AI data centers (pending) · Sept 14, 2026
Introduced September 14, 2026. It would stop state agencies, counties, towns and utilities from approving, permitting or giving tax breaks to new or bigger AI data centers over 10 megawatts for six months, and create a commission to study their effects on power bills, water, health and town budgets. It is in the Assembly State and Local Government Committee. Not law. Source

Bill S680 / A1170: AI data centers must use new clean power (pending) · March 16, 2026
This bill would require AI data centers and crypto mines to get all their electricity from new renewable or new nuclear power, matched hour by hour, and to file an energy use plan with the BPU when they apply for local approval. S680 passed the Senate Environment and Energy Committee on March 16, 2026 and is in the Senate Budget Committee. Not law. Source

💡 Who pays for the power

Separate electricity rate for big data centers (coming) · July 7, 2026
Under P.L.2026, c.32 the BPU must set standards for big data center customers by about July 2027, and then utilities (PSE&G, JCP&L, Atlantic City Electric, Rockland Electric) have 180 days to file a separate data center rate. No data center rate is in place yet. As of October 7, 2026 we did not find a public BPU case number for this work. Source

Electric bills jumped 17% to 20% in June 2025 · June 1, 2025
Electricity supply prices set in the state's yearly auction raised the average home bill (650 kWh a month) by 17.23% (Atlantic City Electric), 20.20% (JCP&L), 17.24% (PSE&G) and 18.18% (Rockland Electric) starting June 1, 2025. The BPU said this came mostly from the July 2024 PJM capacity auction, the regional grid's price for keeping enough power plants ready. Source

Bills in June 2026: small changes, plus a $25 credit · June 1, 2026
For June 2026 to May 2027 the auction changed the average home bill by +0.11% (ACE, $201.76), +1.6% (JCP&L, $137.47), -1.8% (PSE&G, $180.23) and -0.7% (Rockland Electric, $168.93). The BPU said a temporary price cap in the PJM capacity market kept prices flatter. Under the governor's Executive Order No. 1, the BPU gave every home electric customer a one-time $25 credit in August 2026. Source

💵 Tax breaks

Next New Jersey Program – AI: tax credits for big AI data centers · July 25, 2024
A 2024 law created a $500 million state tax credit program run by the NJ Economic Development Authority (NJEDA) for AI companies and large AI data centers. A project must invest at least $100 million and create at least 100 new full-time jobs. The credit is the smallest of: 0.1% of the investment times the number of new jobs, 25% of the investment, or $250 million. Applications opened June 24, 2025. Source

Local property tax breaks (PILOTs) through redevelopment · Aug 25, 2026
Towns can give a data center a property tax break if the site is in a 'redevelopment' or 'rehabilitation' area. A long-term deal (PILOT) can last up to 30 years after the project is done; the developer pays a yearly fee instead of normal taxes, with 5% going to the county. It must be approved by ordinance after a public hearing. A short-term deal can last 5 years. The state urges towns to check the costs to fire, police and other services first. Source

🤐 Secret deals and public records

Secret deals (NDAs) are not banned yet · Oct 7, 2026
No New Jersey law bans secret deals (NDAs) between data center developers and towns or land sellers. Bills S4304 and A2774 would ban them, but they have not passed. The new reporting law (P.L.2026, c.75) keeps some data center performance numbers confidential, but the BPU must post basic energy and water use. Source

How to get public records (OPRA) · Sept 3, 2024
Under the Open Public Records Act (OPRA), anyone may ask for public records, including people from out of state, and you may ask without giving your name. Use the agency's OPRA form. The agency must answer within 7 business days (14 if the records are for a business purpose or need special review, and it can take longer for good reasons if it tells you). Copies cost 5 cents a page. Trade secrets and private business or financial information can be held back. If you are denied, you can file a free complaint with the Government Records Council within 45 days, or go to Superior Court. The rules changed on September 3, 2024 (P.L.2024, c.16). Source

💧 Water

DEP water permits for using more than 100,000 gallons a day · Oct 7, 2026
Anyone who takes more than 100,000 gallons a day from a well, stream or lake for more than 30 days a year needs a Water Allocation Permit from the NJ Department of Environmental Protection (DEP). Most data centers buy water from a public water system instead, so the water utility decides whether to serve them. Under the new law (P.L.2026, c.75), data centers must report peak daily water use and their water source to the BPU. Source

Pinelands Commission reviews data centers in the Pinelands · Aug 2026
In the Pinelands area of South Jersey, the Pinelands Commission reviews town ordinances and building plans. Its staff said data centers can only be allowed in a few places ('Regional Growth Areas'). By the end of August 2026 it had approved data center bans from eight Pinelands towns, with more pending. It also required the Hexa data center plan in Monroe Township (Gloucester County) to file a new application; that dispute is in court. Source

🌫️ Air and generators

DEP air permits for backup generators · Dec 17, 2019
Backup diesel or gas generators need a DEP air permit. Smaller sets use a general permit (GP-005A for diesel, GP-005B for gas) that limits how many hours a year they can run for testing. Bigger sites need an individual air permit. The DEP checks that testing hours are not exceeded. Source

🙋 How to have your say

Who decides a data center near you · Oct 7, 2026
All of New Jersey is inside one of 564 towns, townships, boroughs, cities or villages, and each makes its own zoning rules (counties do not zone). The governing body (township committee, borough council or city council) writes the zoning ordinance. The planning board approves site plans; the zoning board of adjustment decides variances. Many data center projects use 'redevelopment': the governing body declares an 'area in need of redevelopment' after a planning board study and hearing, then adopts a redevelopment plan by ordinance that replaces normal zoning and can include tax breaks (PILOTs). Source

Hearings: who gets notice · Oct 7, 2026
For most site plan and variance hearings, the applicant must notify owners of all property within 200 feet by mail or in person, and publish a notice in the town's official newspaper, at least 10 days before the hearing. Anyone can speak at the hearing. Check your town's land use board agendas. Source

Appeal deadline: 45 days · Feb 10, 2026
To challenge a planning board or zoning board decision in court, you must file an 'action in lieu of prerogative writs' in Superior Court within 45 days after the decision notice is published in the newspaper (Court Rule 4:69-6). Courts only rarely extend this. Source

Help for towns: community benefits agreements · Aug 25, 2026
The state urges towns to sign community benefits agreements with data centers (covering water, noise, light, fire safety, roads and local jobs) and to hold public hearings on them. NJEDA runs a free help desk for towns: DataCenterTA@njeda.gov. Towns can also make developers pay their share of off-site roads, water and sewer work (N.J.S.A. 40:55D-42). Source

How to comment at the BPU · Oct 7, 2026
The BPU decides utility rates and will write the data center rules. Search cases and file comments in the BPU Public Document Search, and watch Board meeting agendas. The Division of Rate Counsel represents ordinary customers in rate cases. Source

🧾 Help with your bills

USF and LIHEAP: help with energy bills · Oct 7, 2026
The Universal Service Fund (USF) gives monthly credits of $20 to $200 on gas and electric bills, and Fresh Start can forgive old unpaid balances. LIHEAP helps with heating costs, medically needed cooling and emergencies; applications run October 1 to June 30 while funds last. One application covers both. Apply at www.nj.gov/dca/dcaid or call 1-800-510-3102. Source

PAGE (NJ SHARES): help for moderate incomes · Oct 7, 2026
The Payment Assistance for Gas and Electric (PAGE) program helps low- and moderate-income households who earn too much for USF. Apply at sharesnation.org or call 1-866-657-4273. Source

Winter Termination Program · Feb 12, 2025
A utility-run program that protects qualifying customers from having service shut off from November 15 to March 15. Ask your utility or the BPU if you qualify. Source

📞 Who to contact

Board of Public Utilities (BPU) · Oct 7, 2026
Sets utility rates, will write the data center rate rules (P.L.2026, c.32) and receives the energy and water reports (P.L.2026, c.75). Takes complaints: 1-800-624-0241. Source

Division of Rate Counsel · Oct 7, 2026
Represents homes and small businesses in utility rate cases. Source

Department of Environmental Protection (DEP) · Oct 7, 2026
Air permits for generators, water allocation permits, wetlands and stormwater permits. Source

Department of Community Affairs (DCA) · Oct 7, 2026
Guides towns on data center deals and tax breaks (Local Finance Notice 2026-13); runs USF and LIHEAP; houses the Government Records Council. Source

Government Records Council (GRC) · Oct 7, 2026
Free help and complaints about public records (OPRA) requests. Toll-free 1-866-850-0511. Source

NJ Economic Development Authority (NJEDA) · Oct 7, 2026
Runs the Next NJ AI tax credits and the Data Center community benefits help desk for towns (DataCenterTA@njeda.gov). Source

Pinelands Commission · Oct 7, 2026
Reviews development and town ordinances in the Pinelands area. Source

New Jersey Legislature · Oct 7, 2026
Bill status and text for data center bills (S4304, A2774, A5482, S680). Source