New Jersey's power grid is facing an unprecedented strain, courtesy of the state's growing number of massive data centers. These behemoths are guzzling electricity at an alarming rate, and it's having a devastating impact on regular residents and businesses who are footing the bill.
A new bill aims to put a price tag on this problem by requiring electric companies to develop special tariffs for "large-load" data centers. The goal is to prevent these power-hungry centers from driving up rates for everyone else in the state, which already has some of the highest utility costs in the country.
Under the plan, energy users with megawatt demands exceeding 100 per month would be charged the new tariffs starting one year after the bill takes effect. The tariffs are intended to incentivize data centers to adopt more efficient technologies that capture and use their own heat instead of burning it off into the environment.
However, not everyone is convinced that this approach will work. Some lawmakers argue that it's just a "shell game" where ratepayers will end up paying higher bills in the long run. Critics like Senator Declan O'Scanlon (R-Monmouth) claim that data centers will simply pass on the costs to their customers, either directly or indirectly.
But supporters of the bill see it as a necessary step to protect New Jersey's residents and businesses from the devastating effects of climate change. "This is one step in the right direction," said Alex Ambrose of the New Jersey Policy Perspective think tank. "We need guardrails to prevent data centers from being prioritized over regular people when it comes to energy supply."
The bill has 10 sponsors, all Democrats, and passed along party lines in the Senate's budget committee despite debate about its effectiveness. The full Assembly approved the bill in June, and it's expected to go before the full Senate for a vote on Monday.
As the state looks ahead to 2030, when energy demand is projected to grow by 32 gigawatts β mostly driven by data centers β lawmakers are taking steps to ensure that these facilities don't become too big to fail. But with Governor Phil Murphy's departure looming, it remains to be seen whether he will sign this bill into law before leaving office on January 20.
A new bill aims to put a price tag on this problem by requiring electric companies to develop special tariffs for "large-load" data centers. The goal is to prevent these power-hungry centers from driving up rates for everyone else in the state, which already has some of the highest utility costs in the country.
Under the plan, energy users with megawatt demands exceeding 100 per month would be charged the new tariffs starting one year after the bill takes effect. The tariffs are intended to incentivize data centers to adopt more efficient technologies that capture and use their own heat instead of burning it off into the environment.
However, not everyone is convinced that this approach will work. Some lawmakers argue that it's just a "shell game" where ratepayers will end up paying higher bills in the long run. Critics like Senator Declan O'Scanlon (R-Monmouth) claim that data centers will simply pass on the costs to their customers, either directly or indirectly.
But supporters of the bill see it as a necessary step to protect New Jersey's residents and businesses from the devastating effects of climate change. "This is one step in the right direction," said Alex Ambrose of the New Jersey Policy Perspective think tank. "We need guardrails to prevent data centers from being prioritized over regular people when it comes to energy supply."
The bill has 10 sponsors, all Democrats, and passed along party lines in the Senate's budget committee despite debate about its effectiveness. The full Assembly approved the bill in June, and it's expected to go before the full Senate for a vote on Monday.
As the state looks ahead to 2030, when energy demand is projected to grow by 32 gigawatts β mostly driven by data centers β lawmakers are taking steps to ensure that these facilities don't become too big to fail. But with Governor Phil Murphy's departure looming, it remains to be seen whether he will sign this bill into law before leaving office on January 20.