New Jersey has passed a landmark bill, A796/S731, mandating that large-load data centers pay their own way for necessary power grid upgrades.
The legislation, which awaits the governor's signature, directs the state's Board of Public Utilities to create a dedicated tariff for data centers consuming at least 50 megawatts of power.
The rule is designed to prevent regular utility customers from subsidizing the massive grid infrastructure these facilities require.
Under the bill's requirements, affected data centers must commit to covering at least 85 percent of their requested electrical capacity for a minimum of ten years. They must also report performance annually to regulators.
The 50-megawatt threshold, lowered from an earlier 100-megawatt draft, now captures a wider range of facilities, including many crypto mining operations and mid-size AI training centers.
Proponents call it the most comprehensive legislation of its kind in the United States. It specifically addresses clean energy sourcing for energy-intensive AI and crypto operations.
The decade-long financial commitment introduces significant structural rigidity, favoring well-capitalized operators over speculative projects that might only operate during market booms.