Trending Now - Gov. Sherrill Proposes Plan for Data Centers to Cover Energy Costs

WHO:

Gothamist - New Jersey Gov. Mikie Sherrill called on lawmakers to send a series of bills to have companies guarantee payment for the energy they use and invest in communities.

WHYY - New Jersey Gov. Mikie Sherrill proposed a four-point plan regarding data centers.

WHAT:

WHYY - Sherrill emphasized that the fourth portion of her plan is to ensure that good-paying, union jobs are created once a data center location has been established and construction begins.

WHYY - The plan requires data centers to pay for their electricity and report their power and water consumption.

WHYY - Sherrill stated that data centers sometimes use 300 megawatts of power, enough to power an entire town.

WHYY - New Jersey electricity rates soared as high as 20% last summer.

WHYY - The state has 80 data centers, with more being built.

Gothamist - Sherrill called on lawmakers to send a series of bills to ensure companies guarantee payment for the energy they use and invest in communities.

WHERE:

WHYY - The plan affects data centers located in New Jersey, including areas from Camden and Cherry Hill to Trenton and the Jersey Shore.

WHY:

WHYY - Sherrill stated, “Instead of asking New Jerseyans to subsidize big tech, we’re asking big tech to improve our grid, making it more efficient and reliable and improving costs for everyone.”

WHYY - The plan aims to prevent New Jerseyans from subsidizing big tech and to improve the efficiency and reliability of the energy grid.

WHYY - The surge in electricity costs is driven by increasing energy demand from the growing number of data centers in the state.

HOW:

WHYY - The legislation being crafted will require data centers to contract with their own power generators and pay for grid updates needed to handle the larger load.

WHYY - The legislation being crafted will require data centers to contract with their own power generators and pay for grid updates needed to handle the larger load.

WHYY - The plan includes guidelines for community development agreements to address noise and pollution concerns.

WHYY - Sherrill emphasized the creation of good-paying, union jobs during the construction of data centers, stating that union labor should be used and prevailing wages paid.

WHYY - The legislature is working on a measure for data center transparency, requiring them to report energy and water use to the public every six months.

(UPDATED May 28, 2026 16:21 UTC)

New Jersey Governor Mikie Sherrill is urging lawmakers to pass a series of bills that would require companies to guarantee payment for the energy they consume while also investing in local communities. As part of her plan, Sherrill highlighted the importance of creating good-paying, union jobs once a data center is established and construction kicks off. The proposed legislation will mandate that data centers contract with their own power generators and cover the necessary grid updates to support the increased energy demands.

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(UPDATED May 28, 2026 06:24 UTC)

New Jersey Governor Mikie Sherrill has proposed a comprehensive four-point plan aimed at regulating data centers throughout the state, which currently number around 80 and are expanding. The plan mandates that these facilities pay for their electricity, report their power and water consumption, and contract with their own power generators, all while ensuring they contribute to community development and job creation. Sherrill is urging lawmakers to pass legislation that would prevent residents from subsidizing big tech and improve the efficiency of the energy grid, especially as the demand for energy from data centers continues to rise.