Requires DEP to conduct study of short and long term effects of water use by large-scale data centers.
A3966 requires the New Jersey Department of Environmental Protection (DEP) to study the effects of water use by large-scale data centers. The bill defines large-scale data centers by reference to thresholds set by DEP, in consultation with the Board of Public Utilities, using factors such as water use, electric demand, physical size, cooling capacity, and computing capacity. The study must examine both short-term and long-term water use impacts, as well as anticipated effects from future facilities.
The DEP’s evaluation must look at impacts on drinking water systems, wastewater systems, and the environment, and it must assess costs, water-use reduction efforts, cooling requirements, uptime effects, and feasible conservation strategies. The department may require information from data center operators and utilities, rely on permit and utility records when data is incomplete, and coordinate with the Board of Public Utilities. DEP must submit a written report to the Governor and Legislature within 15 months of enactment, and the report may include recommendations for future legislation. The act takes effect immediately and expires after the report is submitted.
The bill does not directly regulate data center water use or impose new operating limits; instead, it creates a temporary fact-finding mandate for DEP. It authorizes the agency to collect operational and water-use information from large-scale data centers, public water systems, wastewater utilities, sewerage authorities, and other relevant entities, and to use that information to evaluate statewide impacts. The bill could influence future environmental, utility, and land-use policy by producing a legislative report and possible recommendations for statutory changes affecting data centers, water conservation, and infrastructure planning.
The available voting history suggests broad support at the committee level: the Assembly Environment and Solid Waste Committee reported the bill with amendments by a 5-0 vote. That indicates the measure was viewed favorably as a study and oversight bill rather than a regulatory crackdown. No committee transcript is provided, so there is no recorded debate to indicate significant opposition in the materials supplied.
The main policy issue underlying the bill is the potential strain large-scale data centers may place on water supplies, wastewater systems, ratepayers, and infrastructure, especially as AI-related computing expands. Any contention would likely center on the scope of DEP’s information-gathering authority, the definition and threshold for a “large-scale data center,” and whether the study could lead to future regulation or added compliance burdens for operators. The bill’s supporters appear to favor gathering data before acting, while any concerns would likely come from data center operators, utilities, or stakeholders wary of expanded reporting requirements and possible downstream regulation.