Committee backs requirement that AI data centers bring new clean power; resolution urges multi-state action

The committee combined consideration of S-4143 (energy usage plans and new clean-source requirements for proposed artificial-intelligence data centers) and SR-125 (a regional resolution urging PJM states to require data centers to obtain electricity from new zero- or low-emission sources). Sponsors framed the measures as a response to capacity-market-driven rate increases and an anticipated surge in electricity demand from large AI facilities.

Proponents including Taylor McFarland (Sierra Club), Allison McLeod (New Jersey League of Conservation Voters), Doug O'Malley (Environment New Jersey), and David Pringle (MCIA/Empower New Jersey) argued AI data centers can be "energy hogs" that raise electricity prices and that requiring new, additional clean generation would prevent backfill by fossil-fired sources. McFarland warned of degraded air and water quality, land loss and electricity-price increases if the state does not act.

Opponents — including Ray Kanter (NJBIA) and Mike Egerton (New Jersey Chamber of Commerce) — acknowledged data centers are large energy users but argued the bill's approval process (energy-usage plans to BPU) and limitation on allowable energy sources risk discouraging investment and creating regulatory barriers. Kanter and NJBIA recommended allowing natural-gas generation where legally permitted and asked that regulatory review not impose unnecessary project delays.

Committee action: the committee voted to release S-4143 and SR-125 together after hearing both sides and recorded a roll call. Sponsors said the bill would take effect only if a majority of PJM states adopt similar language through the parallel resolution mechanism; staff noted the bill's regional approach is intended to reduce competitive disadvantages if New Jersey acts alone.