By: Richard L. Smith
In an effort to strengthen environmental accountability and manage the growing resource demands of data centers, New Jersey lawmakers have introduced legislation that would require detailed reporting from these high-consumption facilities.
According to a statement released by Democratic state officials, the Senate Environment and Energy Committee has approved a bill—sponsored by Senate Majority Leader M. Teresa Ruiz and Senator Renee Burgess—that would mandate quarterly reports from data center operators outlining their water and energy consumption, efficiency metrics, and sustainability practices.
“Data centers use an enormous amount of electricity and water, comparable to the daily consumption of hundreds of homes,” said Majority Leader Ruiz (D-Essex/Hudson).
“As these facilities continue to expand across the state, it’s essential that we closely monitor their environmental impact and ensure they are not operating unchecked. This legislation will provide the transparency and data we need to craft smart, equitable policy.”
Senator Burgess (D-Essex/Union) emphasized the potential strain on local infrastructure as more data centers emerge.
“The pressure these facilities place on our electric grid and water systems cannot be ignored. By tracking usage, we’ll be better equipped to manage energy costs and safeguard our communities from undue environmental burdens,” she said.
The proposed bill, S-4293, comes amid increasing concern over surging power demand linked to the proliferation of data centers across New Jersey and beyond.
Under the legislation, data centers would be required to submit their first report to the Board of Public Utilities (BPU) within six months of the bill taking effect, or within three months for facilities that have already been in operation for at least a year.
The reports must then be filed quarterly.
The required information would include the center’s name and address, its utility providers and agreements, total energy usage for IT systems and cooling (measured in kilowatt-hours), and water usage (measured in cubic meters), along with the source of that water.
Additionally, operators would need to disclose energy efficiency data, such as cooling air temperature ranges, average heat output, reliance on renewable energy, and how much waste heat is repurposed.
Once submitted, the BPU would be responsible for making the reports publicly available online within 30 days and maintaining regular updates.
The bill also requires that any significant changes in a data center’s operations or technology be reported to the BPU at least 60 days in advance.
If enacted, the legislation could serve as a model for other states seeking to strike a balance between technological growth and environmental sustainability.