NJ S680

New AI data centers and cryptocurrency mining facilities in New Jersey must derive 100% of electricity from new Class I renewable energy sources, newly constructed nuclear power plants, or a combination, measured hourly with no net decrease to grid supply.

Developers must submit an energy usage plan to the Board of Public Utilities (BPU) for approval before connecting to the transmission and distribution system, with the BPU required to respond within 90 days.

Energy usage plans must detail procedures for minimizing cooling energy, optimizing water sourcing to protect drinking water and the environment, improving building weatherproofing, and reusing computer-generated heat for space or water heating.

Requirements only take effect once the BPU determines that a majority of states in the PJM Interconnection region (the 13-state grid operator including New Jersey) have implemented similar energy supply requirements for data centers.

Currently 73 data centers operate in New Jersey out of 5,381 nationwide, with data center energy demand projected to double or triple by 2028; PJM's July 2024 capacity auction saw prices increase by $12.5 billion over the prior year.