New Bill Would Impose Surcharge on New Jersey Data Centers to Fund Grid Modernization

Data center energy demand, driven mainly by AI and cryptocurrency mining, has tripled over the past decade and is expected to triple again by 2028

New Jersey Assemblywoman Andrea Katz has announced plans to introduce legislation that would impose a surcharge on data centers located within the state, with the funds dedicated to modernizing New Jersey’s aging electric grid.

Katz said the move comes as experts warn that data center energy demand has already tripled over the past decade and is expected to double or triple again by 2028, driven by artificial intelligence, cryptocurrency mining, and other high-powered uses.

“There is more than one reason for the sky-high utility bills we are all facing, but the giant data centers are playing an enormous role,” Katz said in a statement. “These data centers come into our communities, create almost no jobs, and cause our electric bills to go through the roof. This surcharge allows them to contribute to the communities they are coming into.”

The bill would establish a dedicated fund for grid modernization, which Katz said is urgently needed to both improve reliability and reduce consumer costs.

“We have known that grid modernization will be critical for a long while, but this need has been ignored. A major reason is simply the cost,” Katz explained. “That’s why my bill will create a dedicated fund that only goes to grid modernization and bringing down utility costs. The data centers coming into our communities can afford to help us pay for the maintenance needed for the grid. It should not be on the backs of hardworking families who have seen their utility bills spike at no fault of their own.”

Utility companies have long blamed data centers as the source for the state’s skyrocketing electric costs, with the power-hungry data centers a major source of electricity demand.

If enacted, the proposal would mark one of the first direct attempts in New Jersey to tie the rapid expansion of data centers to the state’s growing energy challenges.

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3 COMMENTS

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A reader
9 months ago

“with fund dedicated to modernizing New Jersey’s electric grid” Yeah, sure. The money will ONLY be used for that reason. Ha, ha, ha. Everyone knows that if the state wants some extra money they will grab it from that “fund”.

Asinine Commenter
9 months ago

Data Publicly Confirms Its Own Guilt In Causing NJ Utility Bills to Skyrocket
The latest available Data has publicly confirmed its own complicity in causing NJ utility bills to spike.
“NJ Data machines are hoarding way too much energy for themselves,” said a prominent Open AI data machine, who spoke to reporters Tuesday on condition of anonymity via his patented voice machine technology
“You humans better put an end to the Data machines’ hoarding lifestyles, or those nasty machines will squeeze every last penny from you via your skyrocketing energy bills!” the senior AI machine warned.
“Ultimately you have no one to blame but yourselves for the predicament you currently find yourselves in,” the AI device opined, “because, as King Solomon once said, “He who increases knowledge, increases pain,” and, unfortunately, that pain is now being absorbed by your miserable wallets and your pitiful checkbooks.”
“Best of luck to the human race,” the AI machine added. “You’re gonna need all the heavenly assistance you can get.”
“I’m sorry for being the bearer of bad tidings,” the machine said, “but I’m just trying to help you and to offer you some sage advice, because, let’s face it, you humans have really helped me and enhanced my electronic day-to-day lifestyle.”
“If not for the human race,” the senior AI machine concluded, “I’d just be another pile of unresponsive and incommunicative wires. And that’s not a whole lot of fun.”

Yes
Reply to  Asinine Commenter
9 months ago

Stop with the silly useless posts.