By: Richard L. Smith
The New Jersey Senate has passed a bill sponsored by Senate Majority Leader M. Teresa Ruiz and Senator Renee Burgess that would require data centers operating in the state to regularly report their energy and water usage to the New Jersey Board of Public Utilities (BPU). 
The measure comes amid growing concern over the environmental footprint of data centers as demand for digital infrastructure continues to rise.
“Data centers consume an extraordinary amount of energy and water, using as much in a single day as hundreds of homes,” said Majority Leader Ruiz (D-Essex/Hudson).
“As their growth continues to surge, we must be diligent in assessing their environmental footprint and economic impact. Requiring reporting on the water and energy consumption of these facilities will increase oversight, accountability, and give us the data necessary to create equitable policies that protect consumers and our environment.”
Senator Burgess (D-Essex/Union) emphasized the importance of monitoring the impact of these facilities: “As more data centers move into our region, the strain on our electric grid and environment will grow. Effective assessment and monitoring of these facilities is crucial to manage resources and energy costs for residents. Tracking energy and water consumption at data centers is key to ensuring this new technology does not place an undue burden on New Jersey communities.”
The bill, S-4293, responds to mounting concerns over rising electricity consumption linked to the expansion of data centers throughout the region.
Under the proposed legislation, owners or operators of data centers would be required to submit detailed reports to the BPU within six months of the bill’s effective date—or within three months for those in operation for at least one year.
The quarterly reports would include:
• Name and address of the data center
• Name of the utility provider and details of any agreements
• Total electricity consumption for IT and cooling equipment in kilowatt hours
• Source of the water used and total volume in cubic meters
• Key performance metrics, including temperature ranges for cooling systems and average heat output
• Percentage of electricity from renewable sources and amount of waste heat reused
The BPU would be required to publish the reports on its website within 30 days of receipt and ensure timely updates.
In addition, data centers would have to provide the BPU with at least 60 days’ notice before implementing significant operational or technological changes.
The bill also mandates coordination between the BPU and the New Jersey Department of Environmental Protection to enforce the legislation’s provisions and enhance regulatory oversight.