Governor Sherrill Discloses Plan on Data Centers in New Jersey
Jun 5, 2026 | Written by: | Share
On June 3, 2026, Governor Sherrill announced a comprehensive statewide plan to address the growing impact of data centers on energy demand, resource use, and local communities. These measures are designed to hold data centers accountable, while positioning New Jersey to lead in AI innovation per the governor.
As demand for data centers accelerates, the plan will establish strong guardrails to protect communities, strengthen transparency, ensure these facilities invest in New Jersey’s energy infrastructure, and deliver good-paying jobs. “By establishing these guardrails, we will hold data centers accountable, ensure they contribute their fair share, and make sure our communities not only benefit from the AI innovation happening in our state, but have a real hand in shaping it.”
The comprehensive plan includes four key pillars:
- Establishing fair-share rules to ensure data centers bring new clean energy online and contribute to the grid infrastructure needed to support their growth, shifting costs away from residents and ratepayers.
- Improving transparency, starting with reporting requirements for energy and water use so the public has greater visibility into the impact of large-scale facilities.
- Developing strong statewide standards for Community Benefits Agreements, providing state resources to ensure municipalities can negotiate from positions of strength, and ensuring data centers address impacts like light, noise, and pollution while making meaningful local investments.
- Delivering good-paying jobs by ensuring these centers leverage local trades and pay prevailing wages.
It seems probable that this will require new state laws and mandates. This is likely to be another erosion of local control.
A number of municipalities are pushing back against data centers with ordinances to strictly limit or ban them entirely. Municipalities considering such measures should consult with their attorneys to evaluate their options, as the industry is moving at rapid pace.
Matthew P. Lyons, Esq. is a partner with Gebhardt & Kiefer, PC. He concentrates his practice on civil litigation, primarily in the areas of insurance defense, civil rights, and representation of municipal government and other public entities. Contact Mr. Lyons at 908-735-5161 or via email.
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Any statements made herein are solely for informational purposes only and should not be relied upon or construed as legal advice.