New Jersey to put a series of ‘guardrails’ on data centers

By Dustin Racioppi | 05/28/2026 06:18 AM EDT

Gov. Mikie Sherrill announced the measures in an effort to tame costs in a growing industry.

An aerial view shows gas turbines atop a power plant building.

An aerial view shows gas turbines beside a Vantage data center in Sterling, Virginia. Bob Salehi

New Jersey Gov. Mikie Sherrill on Wednesday announced a set of “guardrails” on data centers in an effort to control costs in a growing industry that puts massive demands on communities and the power grid.

Sherrill’s four-plank plan is the latest in her attempt to hold down energy costs for New Jerseyans, who’ve seen their electric bills jump 20 percent the last year, largely due to data centers.

“That skyrocketing demand is outpacing supply and jacking up all of our electric bills,” Sherrill, a Democrat, said at a news conference to announce her plans. “Not on my watch, not on your backs.”

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The biggest component of her plan would require owners of data centers to bring their own energy to the grid and pay for upgrades to handle larger power loads. President Donald Trump announced a similar effort earlier this year. Sherrill said she will work with the state Legislature to establish those rules for data centers.

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