New Jersey Groups Seek Moratorium on New Data Centers

New Jersey Groups Seek Moratorium on New Data Centers

New Jersey Groups Seek Moratorium on New Data Centers

https://www.govtech.com/artificial-intelligence/new-jersey-groups-seek-moratorium-on-new-data-centers

Publish Date: 2026-05-18 17:45:00

Source Domain: www.govtech.com

  • A coalition of over 60 organizations in New Jersey is urging a temporary halt on approving and constructing large-scale data centers, particularly those using at least 20 megawatts of electricity.
  • The coalition warns that the rapid growth of the AI industry could lead to “irreversible harm” to communities and highlights concerns about environmental impact, rising electricity rates, and excessive water use.
  • The letter to Governor Mikie Sherrill, signed by major groups including the Pinelands Alliance and the ACLU, calls for a moratorium until stronger regulations can be implemented.
  • Similar opposition and proposed regulations or moratoriums are spreading across the country, with over 14 other states considering similar measures.
  • Opponents point to the significant energy and water consumption of data centers, which could worsen greenhouse gas emissions, strain water supplies, and increase pollution, while also driving up electric bills in New Jersey.
  • Data center industry representatives argue that these facilities provide substantial economic benefits, including supporting over 96,000 jobs and contributing more than $17 billion to New Jersey’s economy in 2023.
  • Multiple New Jersey towns have already enacted local bans or restrictions on future data centers amid growing community opposition.
  • State lawmakers are considering at least five bills aimed at new restrictions on large data centers, including measures to limit residents’ utility costs and require detailed reporting of energy and water use.