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Regbase

The Data Center Divide

Hunterdon County

For Hunterdon County, see New Jersey’s statewide laws and regulations below. No additional county-specific measures are listed in our research.

Mixed Data Center Policies

New Jersey requires large data centers to cover much of their electricity costs and offer demand flexibility; reporting and construction rules add paperwork and costs. Tax incentives are available only to qualifying projects, while regulators study possible electricity-cost effects.

Incentives

Tax benefitsFee waivers

Creates Next New Jersey Program tax credits for eligible businesses, including businesses primarily engaged in AI or large-scale AI data centers. Also authorizes waiver of application costs for small businesses.

New Jersey P.L. 2024, c. 49 (2024)
Water and electricity

Requires electric utilities to develop tariffs designed to incentivize large-load data centers to increase energy efficiency; the bill does not specify a discount or subsidy.

New Jersey S731 (2026)

current law · Statewide
Sets out New Jersey guidance for municipalities and data-center developers to ensure data centers bear their energy and grid costs, improve energy and water-use transparency, and address community benefits, infrastructure, local employment, and prevailing-wage work.New Jersey Local Finance Notice 2026-13 (2026)

What this means

The measure would add a modest paperwork and transparency burden: data center owners and operators would file water and energy reports twice a year for three years, and report major operational changes in advance (semi-annual reporting requirement). It does not limit construction or operation, and some detailed performance information would remain confidential, so the practical impact is minor.

People behind it

  • Primary sponsor of Senate Bill 3379.

  • Primary sponsor of Senate Bill 3379.

  • Primary sponsor of Senate Bill 3379.

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  • Primary sponsor of Senate Bill 3379.

  • Primary sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Co-sponsor of Senate Bill 3379.

  • Administers the reporting requirement by receiving data center water and energy usage reports and publishing the required information.

  • Consults and coordinates with the Board of Public Utilities in implementing the measure.

Restrictions & requirementsHide restrictions & requirements8

  • Data center owners and operators must submit water and energy usage reports to the Board of Public Utilities. The first report is due within six months after the law takes effect, or within three months for a facility that has operated for at least one year, followed by semiannual reports for three years beginning when the first report is submitted. The reports must include detailed energy, water, utility, backup-power, and permitting information.

  • A data center receiving a financial incentive from a State agency must provide additional performance and sustainability information, including energy reuse, power usage effectiveness, renewable energy, water usage effectiveness, temperature, renewable electricity, and reused waste heat measurements.

  • An owner or operator must notify the Board of Public Utilities at least 60 days before implementing a substantial operational or technology change that would require updating its water and energy report.

  • Large data centers are subject to a separate electric-service rate structure and cost-allocation rules intended to prevent other utility customers from subsidizing their energy use and related grid infrastructure. Data centers must pay for associated infrastructure, bring in qualifying power resources, reduce demand before grid strain affects residential customers, or participate in a program requiring payment to reduce demand elsewhere.

  • For data center construction projects designed to use at least five megawatts annually after construction, prevailing-wage requirements apply to projects commencing on or after March 1, 2026. Contractors and subcontractors must meet public-works registration, certified-payroll, safety, insurance, bonding, training, drug-testing, apprenticeship, and recordkeeping requirements.

  • If a data center is located on property receiving a tax incentive, construction, reconstruction, demolition, alteration, fabrication, duct-cleaning, repair, or maintenance work after October 20, 2026 requires contractors to submit certified payrolls to both the municipality and the Department of Labor and Workforce Development. This requirement also applies to projects under five megawatts, even though those projects are not subject to prevailing wage.

  • Where a municipality has adopted regulations under the Municipal Land Use Law, a data center developer may be required as a condition of subdivision or site-plan approval to pay its proportionate share of reasonable and necessary off-site street, water, sewer, and drainage improvements caused by the project.

  • A municipality entering into a long-term or five-year property-tax incentive agreement for a data center must use an ordinance and public-hearing process. The agreement also creates continuing compliance and financial-monitoring obligations, including audits for long-term PILOT projects and limits on the duration of the tax benefit.

Benefits & exceptionsHide benefits & exceptions4

  • Facilities used primarily for internal operations by a licensed health care facility or provider are excluded from the data-center definition, unless they operate as commercial data-processing or colocation facilities for unaffiliated entities. This exempts qualifying facilities from the bill’s reporting requirements. internal operations by a licensed health care facility

  • Performance and sustainability information submitted by a data center receiving State financial incentives is confidential, is not subject to disclosure under the Open Public Records Act or the common-law right of access, and may be publicly reported only in anonymized and aggregated form covering at least five facilities. This protects commercially sensitive operating information. shall be confidential

  • Data centers that do not receive a financial incentive from a State agency may submit the bill’s performance and sustainability information at their discretion rather than being required to provide it. may be submitted to the board at the data center%E2%80%99s discretion

  • The mandatory water-and-energy reporting requirement applies for three years beginning when a data center first submits a report, regardless of when it began operating. Continuing the requirement permanently requires a subsequent Board determination and rulemaking under the Administrative Procedure Act, rather than occurring automatically. apply for a period of three years

Sources

current law · Statewide
Enacts the “End Data Center Tax Credits Act,” reducing tax credits available under the Next New Jersey Program; the Governor approved it on August 27, 2026, as P.L. 2026, chapter 77.New Jersey S4390/A5165 (2026)

What this means

The bill would cut the uncommitted tax-credit funding for the Next New Jersey Program from $500 million to $250 million, reducing an incentive available for data-center and AI projects (reduces the amount of tax credits available). That could make new projects or expansions harder to finance, but the measure adds no direct limits or operating requirements for data centers.

People behind it

  • Senate sponsor of S4390.

  • Senate sponsor of S4390.

  • Senate sponsor of S4390 and co-sponsor of the Senate Budget and Appropriations Committee amendments.

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  • Sponsor of A5165 and co-sponsor of S4390.

  • Sponsor of A5165 and co-sponsor of S4390.

  • Sponsor of A5165 and co-sponsor of S4390.

  • Co-sponsor of S4390.

  • Co-sponsor of S4390.

  • Co-sponsor of S4390.

  • Co-sponsor of S4390 and A5165.

  • Co-sponsor of S4390 and A5165.

  • Co-sponsor of S4390 and A5165.

  • May award tax credits for eligible energy storage projects and administer related incentive awards.

  • Administers the Next New Jersey tax-credit program and awards credits under it; the measure reduces the program’s available credits.

  • Prescribes the priority for applying the energy-storage tax credits and administers tax-credit transfer certificates.

  • Certifies any remaining balance of the specified taxpayer tax credits for possible use toward energy-storage incentives and adopts implementing regulations.

Restrictions & requirementsHide restrictions & requirements1

  • Beginning in fiscal year 2025, the amount available from the Aspire and Emerge tax-credit pool for Next New Jersey projects is capped at $250 million, reduced from $500 million. This limits the tax credits available to eligible projects, including data-center-related projects. The amended $250 million cap

Sources

current law · Statewide
Requires the Board of Public Utilities (BPU) to study how data-center electricity use affects electricity costs in New Jersey, including potential subsidies by non-data-center customers, infrastructure-related cost increases, projected residential cost impacts over 20 years, and policy options such as a special tariff.New Jersey P.L. 2025, c. 98 (A5466/S4318) (2025)

What this means

The measure would require the BPU to study data centers’ effects on electricity costs, including possible tariffs. It does not itself impose a tariff or new requirements on building, expanding, or operating data centers, so its direct effect is minimal.

People behind it

  • Primary Assembly sponsor of A5466.

  • Assembly sponsor of A5466.

  • Assembly sponsor of A5466.

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  • Senate sponsor of S4318 and sponsor of A5466.

  • Senate sponsor of S4318 and sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466.

  • Co-sponsor of A5466 and S4318.

  • Co-sponsor of A5466 and S4318.

  • Agency required to administer the measure by conducting the study and submitting the required report.

Sources

current law · Statewide
Takes effect immediately and requires the Board of Public Utilities (BPU) and electric public utilities to establish special standards and tariffs for large data center customers to prevent other customers from subsidizing data-center-related costs and to encourage efficiency, clean generation, storage, and demand flexibility.New Jersey P.L. 2026, c. 32 (A796/S731) (2026)

What this means

The measure adds meaningful costs and operating conditions for large data centers, including paying for at least 85 percent of requested electricity supply, covering utility costs tied to their service, and making demand-flexibility commitments. It also encourages efficiency and on-site energy resources, but does not ban development, so the overall effect is a moderate added burden.

People behind it

  • Primary sponsor of A796.

  • Primary sponsor of A796.

  • Primary sponsor of A796.

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  • Primary sponsor of A796.

  • Primary sponsor of A796 and identified as the proposer of the May 28 Senate floor amendments.

  • Primary sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Co-sponsor of A796.

  • Identified in the bill history as the sponsor of Senate floor amendments.

  • Must establish standards and approve the utilities’ large-data-center rate classes and tariffs.

  • Must develop and file tariffs, then apply the approved tariffs and carry out related requirements.

Restrictions & requirementsHide restrictions & requirements11

  • The Board of Public Utilities must set utility-specific criteria for large data centers, including a minimum size threshold no greater than 50 MW. It must aggregate the energy demand of centers under common ownership or control, on the same or contiguous sites, or sharing substantial infrastructure. The Board must establish defining characteristics and aggregate qualifying facilities.

  • Utilities must establish a special rate class and tariff for large data center customers. The Board’s standards must allocate costs attributable to those customers—including infrastructure costs incurred solely or primarily to serve them—to the data center customers, protect other customers from stranded costs, and address costs associated with co-located generation. The standards must allocate attributable costs to large data center customers.

  • A large data center customer must provide financial guarantees that it will pay for at least 85% of the electricity supply it requests for 10 years, or as otherwise determined in the Board’s standards. It must also provide deposits, financial security, or—if sufficiently creditworthy—financial commitments to protect ratepayers if it closes or uses less service than anticipated; the Board may authorize a stranded-cost recovery mechanism for the class. The 85-percent, 10-year guarantee requirement.

  • A large data center customer whose load is included in a Large Load Adjustment must pay a proportionate share of the utility’s costs for a regional reliability backstop procurement auction, reduced by its procurement of capacity resources. Payment must be proportionate to its share of allocated costs.

  • Tariffs must require large data center customers to make demand-flexibility commitments. At least one is required: curtail or reduce load under specified grid conditions; meet enforceable performance standards with financial penalties; participate in a voluntary demand-reduction program; or, temporarily, make other flexibility commitments approved by the Board. Customers must make at least one listed flexibility commitment.

  • During system emergencies, the Board’s standards must ensure that large data center customers are curtailed before residential customers, except designated critical loads; the curtailment is treated as firm load shed. Priority curtailment before residential customers.

  • Utilities must prioritize interconnection for large data center customers that make binding commitments to bring new clean generation or energy storage, or to take part in qualifying demand-reduction measures. Prioritize interconnection for customers making binding commitments.

  • Prospective large data center customers must disclose substantially similar interconnection or electric-service requests pending with other utilities, in New Jersey or elsewhere, and explain how those requests relate to the proposed project. Applicants must disclose substantially similar requests.

  • New large data center customers must pay the utility’s reasonable costs for interconnection, system-impact, and facilities studies. This requirement does not apply to service for a data center approved to receive service before the act’s effective date. New customers must pay reasonable study costs.

  • The special tariff applies once the Board approves it, including to qualifying applications for new or expanded service that are already pending, unless the Board finds applying it would be inequitable. Existing service approved before the act’s effective date is exempt from the 85% guarantee, security requirements, and study-cost requirement; new or expanded service above the previously approved quantity is not exempt. Pending applications are subject to the approved tariff.

  • Any utility rate or service agreement with a large data center customer—including an agreement made under other authority—must meet the act’s ratepayer-protection requirements. The Board may not approve an agreement that materially weakens those protections. Agreements must satisfy the substantive requirements.

Benefits & exceptionsHide benefits & exceptions6

  • Large data center customers that make binding commitments to bring new clean generation or energy storage, or to participate in qualifying demand-reduction measures, receive priority interconnection. Priority interconnection

  • Customers can procure capacity resources, including through voluntary demand-reduction programs, and have that procurement reduce their share of certain regional reliability-auction costs. Utilities must also offer a demand-reduction trade program through which customers can fund verified flexibility by other customers and receive the resulting capacity benefit. Share of such costs shall be reduced

  • When a large data center customer procures capacity resources, the Board must ensure it is protected from being curtailed ahead of other firm load under a regional “connect and manage” program, subject to the law’s conditions. Protection of that customer from advanced curtailment

  • Data centers already approved for service before the act’s effective date are exempt, for that previously approved service, from the 85-percent electricity-supply guarantee, specified deposits or financial security, and the requirement to pay utility study costs. The exemption does not cover additional service above the previously approved amount. Shall not be subject to the provisions

  • The Board must create a tariff framework for data centers served partly by co-located generation, addressing their share of utility-system costs. Tariff treatment

  • If regional capacity-auction deadlines come before the Board’s standards and tariff deadlines, data centers may enter bilateral or multilateral demand-reduction contracts and submit them to the Board; accepted contracts receive credit, including as a Peak Shaving Adjustment. Bilateral or multilateral demand-reduction contract

Sources

current law · Statewide
Requires New Jersey data-center owners and operators to submit semiannual water and energy-use reports to the Board of Public Utilities (BPU) under P.L. 2026, c. 75, approved by the Governor on August 27, 2026.New Jersey S3379/A4096 (2026)

What this means

The measure adds a modest reporting burden: data centers would submit semi-annual water and energy reports and give 60 days’ notice of certain operational changes. It does not directly limit construction or operation, and the reporting requirement would last three years before the BPU decides whether to make it permanent.

People behind it

  • Primary sponsor of S3379, as listed under Sponsored by: Senator M. Teresa Ruiz.

  • Primary sponsor of S3379, as listed under Sponsored by: Senator Raj Mukherji.

  • Primary sponsor of S3379, as listed under Sponsored by: Assemblyman Michael Venezia.

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  • Primary sponsor of S3379, as listed under Sponsored by: Assemblywoman Shama A. Haider.

  • Primary sponsor of S3379, as listed under Sponsored by: Assemblywoman Rosaura “Rosy” Bagolie.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Co-sponsor of S3379, listed under Co-Sponsored by.

  • Administers the reporting provisions: receives the reports, publishes specified information, and determines whether reporting should continue permanently, as described in the bill.

  • The Board of Public Utilities must consult and coordinate with the department when implementing the measure, as stated in the bill.

Restrictions & requirementsHide restrictions & requirements4

  • Data center owners and operators must submit water and energy usage reports to the BPU. Existing centers that have operated for at least a year must submit within three months after the act takes effect; other centers must submit within six months, then report semi-annually for three years from their first submission. The BPU may decide whether to continue the requirement permanently through rulemaking. Reporting schedule and duration

  • Reports must include specified facility, energy, water, water-source, and on-site power information, and any other information the BPU determines necessary. Required report information

  • A data center receiving a financial incentive from a State agency must also report specified performance calculations and sustainability indicators, including energy and water efficiency measures, temperatures, renewable electricity, and reused waste heat. Additional reporting for incentive recipients

  • After submitting a report, an owner or operator must notify the BPU at least 60 days before implementing a substantial operational or technological change that would require the report to be updated. Advance notice of substantial changes

Benefits & exceptionsHide benefits & exceptions3

  • A facility used primarily for a licensed health care facility’s or provider’s internal operations is excluded from the bill’s definition of a data center, if it does not operate as a commercial data-processing or colocation facility for an unaffiliated entity. The exclusion means it is not subject to this measure’s data-center reporting requirements.

  • Performance and sustainability information submitted under the bill’s special reporting provision is confidential and generally exempt from public-record disclosure; anonymized, aggregated information from at least five facilities may be included in the report. The confidentiality rule covers this information, not the general water- and energy-use information the BPU must publish. The special information is required for data centers receiving a State-agency financial incentive; other data centers may submit it at their discretion.

  • The reporting requirement applies for three years starting when each data center first submits a report. After that period, the BPU decides whether to continue it permanently and, if so, must adopt rules under the Administrative Procedure Act. The three-year period and continuation process limit the duration of the statutory reporting requirement, though they do not guarantee it will end.

Sources

current law · Statewide
Requires prevailing wages for covered data-center construction projects designed to use at least five megawatts of electricity annually; the measure was enacted as Chapter 335 and takes effect on April 1, 2026, applying to projects commencing on or after that date.New Jersey S4928 (2024-2025)

What this means

For data center construction projects designed to use at least five megawatts annually, the measure requires prevailing wages and adds contractor insurance, bonding, training, recordkeeping, and other requirements, which could raise costs and make projects harder to build. It does not directly restrict data center operation, and its worker protections do not substantially offset those added burdens for developers.

People behind it

  • Primary bill sponsor (listed as a primary sponsor)

  • Primary bill sponsor (listed as a primary sponsor)

  • Primary bill sponsor (listed as a primary sponsor)

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  • Co-sponsor (listed as a co-sponsor)

  • Co-sponsor (listed as a co-sponsor)

  • Co-sponsor (listed as a co-sponsor)

  • Co-sponsor (listed as a co-sponsor)

  • Co-sponsor (listed as a co-sponsor)

  • Co-sponsor (listed as a co-sponsor)

  • Co-sponsor (listed as a co-sponsor)

  • The Commissioner of Labor and Workforce Development is directed to adopt rules and regulations to carry out the act (the commissioner shall adopt rules and regulations).

Restrictions & requirementsHide restrictions & requirements12

  • Prevailing wages must be paid for construction, reconstruction, demolition, alteration, custom fabrication, or repair connected to a data center designed for annual electrical usage of at least 5 megawatts. Prevailing wage rates

  • Contractors may not work on covered projects unless they are registered under the Public Works Contractor Registration Act, are not debarred from State public works contracts, submit certified payroll records, have a workers’ compensation experience modifier of 0.95 or lower, provide three years of OSHA injury logs, disclose OSHA citations from the prior 10 years, and provide evidence of an OSHA-compliant safety plan. Contractor requirements

  • Contractors must provide proof of workers’ compensation insurance, general liability insurance of at least $2 million per occurrence, and owned and leased motor vehicle insurance of at least $2 million per occurrence. They may not provide insurance coverage on behalf of a subcontractor. Insurance requirements

  • Contractors must provide a performance and payment bond worth at least 150 percent of the contract value. Bond requirement

  • A contractor is jointly and severally liable for wages, benefits, or other amounts a subcontractor fails to pay workers on the project. Joint and several liability

  • Temporary labor services may be used only if the supplied workers are verifiably enrolled in a qualifying registered apprenticeship program. Temporary labor restriction

  • Contractors must keep daily sign-in sheets listing each worker’s name, contractor, and arrival and departure times, and submit the sheets to the awarding authority weekly. Daily sign-in sheets

  • Workers must complete general construction training meeting or exceeding OSHA-10 standards; each contractor must ensure at least one onsite supervisor or foreperson has OSHA-30-level training and one worker with that training for every 15 workers employed by the contractor at the worksite. Operators of heavy construction equipment or power-actuated tools must provide proof of equipment-specific training. Construction training requirements

  • All workers employed on a covered data center construction project must undergo drug testing. Drug testing

  • For contractors on covered projects, specified safety and insurance information must be made available to the New Jersey Department of Labor and Workforce Development upon request. Information available upon request

  • A project designed for annual electrical usage of at least 25 megawatts may include a project labor agreement with qualifying labor organizations only where, before construction starts, it is determined that the project advances specified State and local interests, including energy, efficiency, quality, safety, timeliness, and a skilled labor force. Project labor agreement provision

  • The requirements apply only to covered projects that commence on or after the law’s effective date, which is the first day of the third month following enactment. Effective date and project scope

Benefits & exceptionsHide benefits & exceptions1

  • A data center designed for annual electrical usage of at least 25 megawatts may include a project labor agreement with qualifying labor organizations, if before construction it is determined that the project advances specified State and local interests, including timeliness and a skilled labor force. May include a project labor agreement.

Sources

current law · Statewide
Establishes the Next New Jersey Program, effective July 25, 2024, to attract artificial-intelligence and large-scale AI data-center investment, create jobs, and promote New Jersey’s innovation economy under the New Jersey Economic Development Authority.New Jersey P.L. 2024, c. 49 (2024)

What this means

The measure offers qualifying AI data-center projects tax credits of up to $250 million, which could make building or expanding them more attractive. The benefit is limited to projects meeting demanding conditions, including at least $100 million in investment and 100 new jobs, plus environmental, wage, and other requirements.

People behind it

  • Primary sponsor of S3432.

  • Primary sponsor of S3432.

  • Primary sponsor of S3432.

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  • Primary sponsor of S3432.

  • Primary sponsor of S3432.

  • Co-sponsor of S3432.

  • Co-sponsor of S3432.

  • Co-sponsor of S3432.

  • Co-sponsor of S3432.

  • Co-sponsor of S3432.

  • Administers the Next New Jersey Program.

  • May approve tax-credit awards under the program.

  • Responsible for adopting rules and regulations to implement the act.

Restrictions & requirementsHide restrictions & requirements14

  • To qualify for program tax credits, a project must commit at least $100 million in capital investment and create at least 100 new full-time New Jersey jobs. Applications must be submitted before March 1, 2029. Minimum investment and job thresholds

  • The business or division must be primarily engaged in AI or large-scale AI data centers: more than 50% of its employees must perform AI-related activities or more than 50% of its revenue must come from them. Using AI merely to support the business’s own operations does not count. Industry eligibility test

  • The qualifying project must establish a collaborative relationship with a New Jersey-based research university or technology startup, or both. The relationship must be evidenced by price concessions, AI support services, or other measures the Authority accepts. Collaborative relationship requirement

  • The facility must meet environmental and sustainability standards set by the Authority, including standards concerning renewable energy, energy efficiency, and non-renewable resources. Minimum environmental and sustainability standards

  • Construction contracts valued above $2,000 must comply with the Authority’s affirmative-action requirements. Workers performing construction connected with capital improvements, and workers performing building-services work at the facility, must receive at least the prevailing wage for their craft or trade. Construction and building-services conditions

  • Before signing a project agreement, an approved business must obtain site-plan approval, committed financing, and site control for the facility. Site-plan approval, financing, and site control

  • Before the board considers an application, the Authority checks whether the business is in substantial good standing with the labor, environmental, and treasury departments, or has an acceptable corrective-action agreement. The business must also certify that contractors and subcontractors are registered, not debarred from public-works contracts, and hold tax-clearance certificates. Application and contractor checks

  • If the Authority retains a third party to analyze an application, the applicant must pay the full direct cost; the Authority may waive some or all of the application costs for a small business. Application-analysis costs

  • A project agreement must require the business to keep the project in New Jersey for the commitment period, which cannot be less than twice the five-year eligibility period—at least 10 years. The Authority may recapture some or all credits if the project is not maintained in New Jersey for that period. Commitment-period requirement

  • Qualifying jobs must pay at least 120% of the project county’s median salary and include health benefits, which may be provided within 90 days of the employee’s start date. Independent contractors and consultants do not count as eligible positions. Eligible-position requirements

  • Businesses must report annually on jobs and salaries and provide specified New Jersey tax, wage, and payroll records; the Authority may audit payroll records. If qualifying jobs or their salaries fall below 80% of the project-agreement figure or the program minimum, whichever is greater, credits are forfeited for that period and later periods until the Authority approves a restoration. Ongoing reporting and employment conditions

  • The project agreement must require on-site consultations with the Department of Health’s Division of Workplace Safety and Health. On-site safety consultations

  • Failure to comply with the project agreement or other program criteria can trigger recapture of some or all awarded credits, potentially with interest, statutory penalties, and collection costs. Credit recapture for noncompliance

  • Beginning in fiscal year 2025, no more than $500 million from the specified Aspire and Emerge credit allocation is made available for Next New Jersey Program projects, limiting the credits available through this program. Program allocation limit

Benefits & exceptionsHide benefits & exceptions5

  • The program allows businesses primarily engaged in AI or large-scale AI data centers to apply for tax credits if they commit at least $100 million in qualifying investment and create at least 100 new full-time New Jersey jobs. Eligibility also requires, among other things, a collaboration with a New Jersey research university or technology startup, compliance with environmental standards, and prevailing wages for construction and building-services workers; qualifying jobs must meet salary and health-benefit requirements. At least $100,000,000 At least 100 new full-time jobs

  • Qualifying investment can include site preparation, construction, renovation, improvements, furnishings, and machinery or equipment, including computer systems, hardware, and software. Investment made by an affiliate, or by a landlord on behalf of the business or affiliate, may count; an affiliate may also satisfy site-control requirements, but the credit certificate is issued to the eligible business, not the affiliate. Capital investment includes construction and equipment

  • The total credit is the lesser of 0.1% of total capital investment multiplied by the number of new full-time jobs, 25% of total capital investment, or $250 million. Credits are available over a five-year eligibility period, with no more than one-fifth of the total award claimable in a tax period. The lesser of the stated credit limits

  • Credits may begin when occupancy permits are received for any portion of the project, or upon another project-completion event specified in the project agreement. An approved credit may be carried forward for up to 10 successive tax periods; a business may also obtain a transfer certificate and sell or assign credits, subject to a $25,000 minimum transfer, timing rules, a minimum sale price of 85% of the credit before permitted present-value discounting, and a ban on later transfers by the purchaser or assignee. Credits may begin upon occupancy permits Carryforward for 10 successive tax periods

  • Beginning in fiscal year 2025, up to $500 million from the annual Aspire and Emerge credit allocations is made available for projects receiving credits under the Next New Jersey Program. This remains subject to the combined $11.5 billion, nine-year cap covering the listed incentive programs. Up to $500,000,000 Overall cap of $11.5 billion

Sources

current law · Statewide
Declares an immediate statewide emergency to address electricity affordability, rising demand, and grid reliability.New Jersey Executive Order No. 2 (2026)

What this means

The order speeds up solar, battery, and grid projects, which could make it easier to supply power for data-center growth, but it does not directly offer data centers incentives or ease their siting rules (accelerates programs to bring on thousands of megawatts). It also asks the BPU to address large electricity-load requests and duplicate requests, but does not clearly impose new duties on data-center operators (interconnections of large consumers of electricity).

People behind it

  • Issued Executive Order No. 2, declared the statewide emergency, and directed the measures. Declared a State of Emergency.

  • Assigned most of the order’s implementation, including solar and storage solicitations, community solar registration, virtual power plant development, and interconnection policies. BPU shall accelerate the development.

  • Directed to identify and initiate appropriate permitting or siting rule waivers to expedite generation and grid-stabilization projects. all relevant State entities shall take.

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  • Assigned permitting and emissions-related actions, including expedited processes for certain existing gas-fired plants and consideration of compliance-deadline extensions. DEP shall take the following measures.

  • Identified as a state entity involved in permitting or siting that must identify relevant rules and initiate appropriate waiver steps. including but not limited to the Department of Agriculture.

  • Identified as a state entity involved in permitting or siting that must identify relevant rules and initiate appropriate waiver steps. the Department of Community Affairs.

  • Identified as a state entity involved in permitting or siting that must identify relevant rules and initiate appropriate waiver steps. the Department of Transportation.

  • Directed to submit interconnection-related memoranda or filings; also assigned, with third-party suppliers, to administer the state’s virtual power plant program. administered by electric distribution utilities and third-party suppliers.

  • Assigned, with electric distribution utilities, to administer the virtual power plant program. administered by electric distribution utilities and third-party suppliers.

  • Established to coordinate executive-branch efforts to formulate and implement a strategy for developing new nuclear generation facilities in New Jersey. authorized to establish appropriate rules of procedure.

  • Named as a member agency of the Nuclear Power Task Force, which is tasked with advancing a strategy for new nuclear generation. shall serve as members of the Nuclear Task Force.

  • Named as a member agency of the Nuclear Power Task Force, which is tasked with advancing a strategy for new nuclear generation. the Department of Military Affairs.

  • Named as a member agency of the Nuclear Power Task Force, which is tasked with advancing a strategy for new nuclear generation. the Department of the Treasury.

Restrictions & requirementsHide restrictions & requirements1

  • The order directs BPU, within 45 days, to develop policies, proposals, information requests, or reports about interconnections for large electricity consumers, including monitoring duplicative requests across utility territories to address “ghost load.” This may add review or reporting steps for large-load interconnections, but the order does not itself impose a ban or directly require data centers to file reports. monitoring duplicative interconnection requests

Sources

pending · Statewide
Would regulate data-center development under New Jersey’s Municipal Land Use Law by requiring municipal planning boards to submit complete site-plan and major-subdivision applications to the State Planning Commission and Board of Public Utilities for review, with State Planning Commission approval required before final municipal approval and a 45-day decision period.New Jersey S3611 (2026)

What this means

The bill would add a state review step before a data center project can receive final local approval, though the state would have 45 days to decide before approval is automatic (45 days). It would also bar data centers from receiving state economic-development subsidies (shall not be eligible), creating meaningful added hurdles and limiting financial support.

People behind it

  • Primary sponsor of the bill

  • Primary sponsor of the bill

  • Reviews and approves or denies covered data center site plans and major subdivisions; adopts implementing rules and regulations

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  • Consults with the State Planning Commission in reviewing covered data center developments and implementing regulations

Restrictions & requirementsHide restrictions & requirements3

  • A complete data-center site plan or major-subdivision application must be submitted by the planning board to the State Planning Commission and Board of Public Utilities for review, and the municipality must determine the review cost and charge it to the developer.

  • A planning board may not grant final approval for a data-center site plan or major subdivision unless the State Planning Commission first grants final approval. The Commission, consulting with the Board of Public Utilities, has 45 days to approve or deny; approval is deemed granted if no decision is issued within that period.

  • Data-center development is ineligible for economic development subsidies valued at more than $25,000 from a State public body, including bonds, grants, loans, loan guarantees, matching funds, tax credits, and other tax expenditures. Unsubsidized procurement contracts and contracts solely for construction or renovation of a State-owned facility are excluded.

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  • The State Planning Commission must approve or deny a data center site plan or major subdivision within 45 days of receiving it; if it does not act within that period, final approval is deemed granted.

Sources

pending · Statewide
Would require developers of covered AI data centers to make specified disclosures and conduct public engagement before seeking preliminary site-plan approval under the Municipal Land Use Law, including notice at least 180 days before submitting the site plan, information on the proposed location, public resources and environmental impacts, multilingual outreach, signage, and direct mail to properties within five miles.New Jersey A5224 (2026)

What this means

If enacted, this proposed bill would add a 180-day advance disclosure requirement and require developers to fund an independent environmental analysis. These added steps could raise costs and delay preliminary site-plan review, but they do not ban data centers or directly restrict their ongoing operation.

People behind it

  • Primary sponsor who introduced the measure

Restrictions & requirementsHide restrictions & requirements10

  • A developer must disclose the data center’s location, estimated public resources and costs—including tax incentives—and environmental impacts to local elected officials and the public at least 180 days before submitting the site plan for review.

  • A developer must establish ongoing engagement with local media and social media serving the area.

  • A developer must post physical signage about the data center at the proposed development site.

  • A developer must provide development information materials in multiple languages, including English, Spanish, and other commonly spoken local languages.

  • A developer must send direct mail about the project to properties within five miles of the proposed data center site.

  • During the preliminary site plan approval process, non-disclosure agreements may be used only to protect confidential or proprietary information whose disclosure could give a competitor an unfair advantage.

  • A developer may not use a non-disclosure agreement concerning the data center with a government entity or official, or to conceal the use of public resources.

  • If multiple developers are involved in developing, owning, or operating the data center, they must coordinate and issue one joint public disclosure satisfying the bill’s disclosure requirements.

  • A preliminary site plan application is incomplete unless it includes an environmental impact analysis conducted by an independent third party and funded by the developer.

  • The required environmental impact analysis must address impacts on air and water quality, soil, land use, wildlife, habitat, biodiversity, ecosystems, climate, public health, environmental justice communities, and natural-resource sustainability.

Sources

pending · Statewide
Would prohibit applicants for data-center development and their agents from entering into agreements, including nondisclosure agreements, intended to conceal development details or prevent public review; those agreements would be unenforceable.New Jersey A2774/S4304 (2026)

What this means

The bill would not limit building, expanding, or operating data centers, but it would require applicants to avoid agreements that hide development details and to attest that no such agreement was made with the property seller (agreements intended to conceal development details). Because a violation could block required approvals, it adds a modest paperwork and compliance burden, but does not impose broad development restrictions.

People behind it

  • Assembly sponsor of A2774

  • Assembly sponsor of A2774

  • Primary Senate sponsor of S4304

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  • Primary Senate sponsor of S4304

  • Co-sponsor of S4304

  • Co-sponsor of S4304

  • Co-sponsor of S4304

  • Co-sponsor of S4304

  • Co-sponsor of S4304

  • Co-sponsor of S4304

Restrictions & requirementsHide restrictions & requirements3

  • Applicants for data-center development, including their agents, may not enter into agreements—including nondisclosure agreements—with an approving authority, municipal agency, or property seller that conceal development details or prevent public review; such agreements are against public policy and unenforceable.

  • A data-center applicant must attest that the buyer, the buyer’s agents, the developer, and every other party involved in the real-estate transaction did not enter into an agreement with the property seller to conceal the development plans or prevent their public review.

  • An approving authority, municipal agency, or enforcing agency may not approve a minor site plan, minor subdivision, site plan, subdivision, or any other approval required under the Municipal Land Use Law or the State Uniform Construction Code Act if the applicant violates the measure’s restrictions.

Sources

failed · Statewide
Would require each electric public utility to establish Board-approved tariffs for commercial large load customers operating centralized facilities with monthly demand exceeding 100 megawatts, with utilities filing proposed tariffs within 180 days and applying approved tariffs to qualifying customers after one year.New Jersey S731 (2026)

What this means

The bill would make very large data-center projects harder to finance and operate by requiring customers to cover their share of utility costs and provide guarantees to pay for at least 85% of requested service for 10 years. The rules apply only to customers above 100 megawatts, and utilities may ease them when a customer offers flexibility or new energy supply, so this is a significant barrier rather than a ban.

People behind it

  • Primary sponsor of Senate Bill 731

  • Primary sponsor of Senate Bill 731

  • Co-sponsor of Senate Bill 731

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  • Co-sponsor of Senate Bill 731

  • Co-sponsor of Senate Bill 731

  • Co-sponsor of Senate Bill 731

  • Co-sponsor of Senate Bill 731

  • Co-sponsor of Senate Bill 731

  • Co-sponsor of Senate Bill 731

  • Administers the measure by reviewing and approving utility tariff applications, establishing applicable rates, and determining qualifying large load customers

  • Must file large-load customer tariff applications and apply the approved tariffs to qualifying customers

Restrictions & requirementsHide restrictions & requirements6

  • Commercial facilities with a monthly retail-electric demand of more than 100 megawatts must receive service under a special Board-approved tariff, which the electric public utility must apply beginning one year after the act's effective date.

  • A new large-load customer must provide financial guarantees to pay for at least 85 percent of the electric service it requests for at least 10 years after service begins.

  • A new large-load customer must show to the utility's reasonable satisfaction that its project is unique and not duplicative of another large-load customer project in New Jersey or elsewhere, or identify the project's interdependencies.

  • A large-load customer must post Board-approved deposits or other financial security sufficient to protect other utility customers from material rate increases if the project stops operating or takes less service than anticipated during the first 10 years of service.

  • The special tariff must assign all costs attributable to large-load customers to those customers rather than allowing other utility customers to subsidize them, potentially increasing the cost of service for qualifying facilities.

  • The Board may impose additional provisions it considers necessary to protect other utility customers, and may require rates, terms, and conditions addressing increased transmission and distribution costs caused solely or primarily by large-load customers.

Benefits & exceptionsHide benefits & exceptions4

  • Requires each electric public utility to establish a dedicated tariff for commercial customers with monthly demand above 100 megawatts, allowing the Board of Public Utilities to approve customer-specific rates for their electricity service. dedicated tariff

  • Requires the Board of Public Utilities to review the utilities’ tariff applications expeditiously and approve them if they comply with the measure and other applicable requirements, which can facilitate timely access to utility service. expeditiously review

  • Requires the tariff to incentivize large-load customers to improve energy efficiency, including by using technologies that capture and use heat produced by the facility. incentivize

  • Allows the Board of Public Utilities to approve utility rate filings that relax the measure’s customer-protection requirements when a large-load customer provides sufficient operational flexibility or brings additional energy and capacity online. relax the requirements

Sources

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