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Committee orders DEP study of AI/data‑center water use amid local concerns

Assembly Environment, Natural Resources and Solid Waste Committee · March 16, 2026
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Summary

A3966 directs DEP to study short‑ and long‑term water impacts of large‑scale data centers after witnesses warned rapid AI‑related development can strain water and wastewater systems; committee released the bill for further work.

The committee released A3966, a bill directing the Department of Environmental Protection to study short‑ and long‑term impacts of water use by large‑scale data centers and to consult with relevant boards and utilities in compiling data.

Sponsors said rapid growth of AI/data centers presents new water‑use issues — cooling systems can withdraw large volumes of fresh water and produce high‑temperature wastewater — and called for a 15‑month DEP review. Supporters including Luke Pavlov (New Jersey League of Conservation Voters) and local advocates argued that without a baseline study policymakers cannot properly assess permitting and infrastructure needs.

Witnesses from affected communities in South Jersey described projects that moved quickly through redevelopment processes with limited notice and raised concerns about groundwater impacts on shared aquifers, potential increases in water bills and the possibility of thermal discharges that local wastewater systems may not be equipped to treat. Several speakers asked for more than a study, suggesting moratoria or stronger local oversight in hard‑hit counties.

The committee voted to amend and release A3966 so DEP can begin data collection and report back with recommendations on permitting, infrastructure and potential mitigation measures.

What’s next: DEP will collect data from owners/operators, utilities and permit records as available; the committee expects a report with recommendations to inform future permitting policy and potential statutory changes.