The Eleventh New Jersey · Congressional District 11 Morris · Essex · Passaic
The Eleventh

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Sherrill signs data center transparency law requiring usage reports

Governor Sherrill signed legislation on August 27 mandating that New Jersey data centers report water and energy use to the Board of Public Utilities every six months.


Governor Mikie Sherrill signed Senate Bill 3379 into law on Thursday, August 27, completing a four-part plan she first outlined in May. The signing event took place at the South Brunswick Public Library auditorium in Monmouth Junction, where officials gathered to announce the new guardrails for data center operations. This legislation requires data centers across the state to disclose their specific water and energy consumption levels to state regulators.

Key details of the new reporting law

The new measure mandates that data center owners and operators submit semi-annual reports detailing their resource usage to the New Jersey Board of Public Utilities. These reports must be filed every six months and will include specific data on cooling systems, peak water use, power supplies, and other resource demands. The law applies to every data center operating within New Jersey, ensuring a standardized approach to tracking these high-consumption facilities.

The signing ceremony included several key state leaders who helped advance the legislation through the legislature. Senate Majority Leader Teresa Ruiz and Assemblyman Michael Venezia were present at the event alongside South Brunswick Mayor Charles Carley. Allison McLeod, the interim Executive Director of the New Jersey League of Conservation Voters, also attended the press conference to support the implementation of these data center guardrails.

Context of the four-part plan

This signing marks the final step in a comprehensive strategy that Governor Sherrill introduced earlier this year. The event was framed around a theme of giving power back to communities by increasing transparency regarding industrial resource consumption. Officials stated that completing this four-part data center plan was a priority for addressing local concerns about infrastructure strain.

The legislation comes at a time when nearly 40 towns in New Jersey have banned new artificial intelligence data centers due to local concerns. Residents and local officials have raised alarms about the impact of these facilities on municipal resources, prompting this state-level response. The governor continues to blame data centers for utility spikes that affect communities across the state.

Impact on local utilities and residents

The requirement for data centers to reveal how much electricity and water they use is intended to provide clarity on their impact on the grid. By mandating these disclosures, the state aims to address the growing tension between industrial expansion and residential utility reliability. This transparency allows communities to better understand the scale of resource demands placed on local infrastructure.

Reports generated under this law will detail specific metrics such as cooling requirements and peak water usage during high-demand periods. These figures are critical for understanding how data centers contribute to overall energy consumption patterns in New Jersey. The Board of Public Utilities will now have access to consistent data that was previously not required to be shared publicly.

What happens next for compliance

Data center operators must now prepare to submit their first semi-annual reports to the Board of Public Utilities following the enactment of this law. The timeline for these initial submissions will follow the six-month reporting cycle established by Senate Bill 3379. Failure to comply with these new disclosure requirements could result in regulatory scrutiny from state officials.

The implementation of these guardrails represents a significant shift in how New Jersey manages its growing data center sector. Officials hope that this increased transparency will help balance the needs of technology companies with the reliability of local utility systems. The law provides a framework for ongoing monitoring and potential future adjustments based on the reported data.

Community leaders in South Brunswick and other affected areas have watched closely as this legislation moved through the state government. The choice to hold the signing event at a public library underscored the administration's focus on community engagement and access to information. Local residents can now expect more detailed reporting on how these facilities impact their neighborhoods.

The governor's office released photos from the event showing the officials gathered before the signing of the bill. These images capture the moment when the four-part plan was officially completed with the enactment of this transparency measure. The visual record serves as a marker for the state's commitment to addressing data center concerns through legislative action.

Questions residents are asking

How often do data centers have to report their usage?

Data centers are required to submit reports on their water and energy use every six months. These semi-annual reports must be sent directly to the New Jersey Board of Public Utilities.

What specific information must data centers disclose?

The law requires facilities to report details on cooling systems, peak water use, power supplies, and other resource demands. This comprehensive data helps regulators understand the full scope of facility consumption.

Where was the bill signed into law?

Governor Sherrill signed the legislation at the South Brunswick Public Library auditorium in Monmouth Junction on August 27. The event included state leaders and local officials from the area.