Statement

New Jersey Will Hold Data Centers Accountable for Cost Increases

New law requires data centers to bring their own clean energy

By

Published on Jul 7, 2026 in Climate

Today, Governor Sherrill signed into law S731/A796, which creates a new utility rate structure for data centers, requires them to bring their own new clean energy, and requires them to pay for necessary grid upgrades.

In response, NJPP releases the following statement:

Alex Ambrose, Senior Policy Analyst, New Jersey Policy Perspective:

“Today, lawmakers delivered on their promise of more affordable energy for all New Jerseyans. Holding data centers accountable for their role in rising electricity prices will drive down costs and ensure working-class families aren’t footing the bill. Data centers will now be required to invest in New Jersey’s electric grid system, which creates more accountability for the harmful impact they have on our communities. This bill will also begin to address the unequal burden AI data centers place on environmental justice communities; across the state, these communities already experience higher air pollution and worse health outcomes.”

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Author

  • Alex Ambrose, Policy Analyst, researches policies with a focus on climate justice and transportation.

    Prior to NJPP, Alex served as Policy Associate at the Association of NJ Environmental Commissions (ANJEC) and Policy Assistant at New Jersey League of Conservation Voters (NJLCV). In those roles, she worked on policy and legislation to protect clean water, preserve open space, and reduce greenhouse gas emissions with an emphasis on equity. Most recently, she worked to pass plastic pollution legislation including the statewide single-use bag ban.

    Alex currently serves as the Chair of Clinton Township Environmental Commission and is pursuing her Master's in Public Administration at Rutgers University. She received her Bachelor of Science in Ecology, Evolution, and Natural Resources from Rutgers University with a minor in Environmental Geomatics.

    Email: ambrose@njpp.org |
    Follow Alex on Twitter
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