NJ lawmakers target energy-hungry AI data centers

June 20, 2025 | njspotlightnews.org

With New Jersey residents facing steep hikes in electric bills, some lawmakers are taking aim at a growing industry that has been singled out for driving up costs: artificial intelligence data centers.

Assemblyman Dave Bailey (D-Salem), has sponsored a bill to create a rate structure, known as a tariff, for any new data centers built in the state.

“We’ve got to strategize. We have to think, what are the positive impacts of this type of technology, what are the potential negative impacts, especially on the ratepayer and the increased use of energy that will come about because of the use of the data centers,” Bailey said.

New Jersey and the 12 other states served by the PJM regional grid are dealing with spiking electric costs as demand for power is outpacing supply. State leaders in New Jersey have spent months blaming PJM Interconnection for moving too slowly to connect new power sources to the grid.

Bailey’s bill highlights the strain on energy supplies that the fast-growing AI industry is creating.

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