New Jersey Coalition Calls for Data Center Moratorium Amid AI Expansion
More than 60 environmental, labor and community organizations are urging Gov. Mikie Sherrill to temporarily halt approval and construction of large-scale data centers, warning that artificial intelligence facilities could strain the state's infrastructure and drive up electricity costs for residents.
The groups want a moratorium on data centers using at least 20 megawatts of electricity until the state establishes stronger regulations. A single 20-megawatt facility consumes as much power as all homes in Montclair combined.
Signatories include the Pinelands Alliance, the ACLU, the New Jersey Highlands Coalition, The Nature Conservancy and NY/NJ Baykeeper. The letter, delivered Thursday, warns of "irreversible harm" to communities and the environment without action. Advocates plan to deliver a petition with thousands of resident signatures supporting the pause.
What's Driving the Push
Data centers are massive facilities filled with servers that process and store digital information. AI-focused centers can consume electricity equivalent to tens of thousands of homes and millions of gallons of water annually for cooling systems.
New Jersey hosts about 80 data centers, mostly in the northern half of the state. Only a fraction currently serve AI operations, but demand is expected to surge. U.S. data center capacity driven by AI could more than triple by 2030.
Residents near existing facilities have reported constant humming noise, elevated electric bills, and water supply concerns. In Vineland, a 2.6-million-square-foot AI data center under construction for Microsoft has drawn complaints about noise disrupting sleep.
Industry Response and Economic Claims
The data center industry pushes back on environmental concerns, arguing that large facilities fund power grid upgrades and generate significant economic benefits. Data centers supported more than 96,000 jobs and contributed more than $17 billion to New Jersey's economy in 2023, according to the Data Center Coalition, a national trade group.
Khara Boender, director of state policy for the Coalition, said in a statement: "Data centers are the essential digital infrastructure behind every online purchase, telehealth appointment, online news article, and digital classroom."
Local Action and State Legislation
Several New Jersey towns have already moved independently. Monroe Township in Gloucester County and Andover Township in Sussex County passed local bans on data centers after residents protested zoning changes.
At the state level, at least five bills are advancing through the Legislature to regulate the industry. Proposed measures would limit resident costs for powering facilities, require detailed reporting on water and energy use, and ban nondisclosure agreements tied to projects.
The state has also actively recruited AI companies. Former Gov. Phil Murphy created the state's first tax incentive program for AI projects and large-scale data centers in 2024. CoreWeave, a Livingston-based cloud computing company, received $250 million in tax credits last year and is opening a nearly 400,000-square-foot facility in Kenilworth.
National Trend
Data center fights are spreading across the country. At least 14 other states are considering moratoriums or restrictions on data center growth, though none have passed into law yet, according to the National Conference of State Legislatures.
The coalition said a statewide pause would allow lawmakers to study the industry's long-term impacts and establish protections before additional facilities are built. "Taking a measured pause now will help ensure that decisions made today do not create irreversible harm tomorrow," the groups wrote in their letter.
For professionals in real estate and construction, understanding data center regulations is becoming essential as these projects reshape industrial zoning and infrastructure planning across the state. AI for Real Estate & Construction resources cover how the technology is influencing facility development and property management decisions.
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