New Jersey lawmakers are considering legislation that would require data centers to pay a surcharge to help modernize the state’s aging power grid.
The move comes amid rapid growth in AI and cryptocurrency operations, which are straining electricity infrastructure and driving up utility bills for residents.
The bill, introduced by Assemblywoman Andrea Katz, would direct the surcharge into a fund exclusively for grid upgrades and cost reduction.
Katz noted that data center electricity use has tripled over the past decade and could rise further by 2028. Analysts estimate that data centers account for 63% of projected electricity cost increases in the state.
Supporters say the measure ensures data centers contribute to local communities without burdening households. Opponents, including some industry groups, argue it could hinder economic development.
The proposal has also become a campaign issue in New Jersey’s 2025 gubernatorial race, with Democrats emphasizing fairness for consumers and Republicans highlighting job growth potential.
As of mid-October, the bill has been referred to the Assembly Telecommunications and Utilities Committee for review. Advocacy groups such as the Sierra Club have expressed support, while industry lobbyists are monitoring the legislation closely.
The bill reflects growing national debate over AI’s energy demands and could set a precedent as data centers are projected to consume up to 8% of U.S. electricity by 2030.
