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NJ S4143
Bill
Status
2/20/2025
Primary Sponsor
Robert Smith
Click for details
AI Summary
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AI data centers and cryptocurrency mining facilities that are not yet operational must derive all electricity, measured hourly, from new Class I renewable energy sources, newly constructed nuclear power plants, or a combination thereof
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Operators must submit an energy usage plan to the Board of Public Utilities when applying for local development approval, covering renewable energy procurement, cooling efficiency, water usage optimization, building weatherproofing, and heat reuse strategies
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The Board of Public Utilities has 90 days to approve, conditionally approve, or disapprove energy usage plans; facilities cannot connect to the transmission grid without board approval
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Requirements only take effect after the Board determines that a majority of states within the PJM Interconnection region (13-state electric grid) have implemented similar energy supply requirements for data centers
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The legislation responds to concerns that data center growth is driving up electricity capacity prices, citing a $12.5 billion increase in PJM capacity auction prices and 35% higher residential electricity prices in 2025 compared to 2023
Legislative Description
Requires energy usage plan for proposed artificial intelligence data centers and cryptocurrency mining facilities; requires all electricity for artificial intelligence data centers and cryptocurrency mining facilities to be derived from new clean energy sources.
2nd Reading in the Senate
Last Action
Senate Amendment (Voice) (Ruiz)
6/2/2025