Requires DEP to conduct study of short and long term effects of water use by large-scale data centers.
This bill requires the New Jersey Department of Environmental Protection (DEP) to conduct a study of the short- and long-term effects of water use by large-scale data centers. The study must examine past water use impacts over the prior three and seven years, anticipated impacts from future facilities, efforts to reduce water consumption, effects on statewide water use and costs, operational impacts on data centers, and the direct and indirect costs to public water systems, ratepayers, and infrastructure. It also directs DEP to analyze feasible water-reduction strategies and gather any additional information needed for a comprehensive assessment.
The bill defines “large-scale data center” broadly to include facilities used for storage, management, and processing of digital or AI data that meet thresholds set by DEP in consultation with the Board of Public Utilities (BPU), based on resource consumption factors such as water use, electric demand, size, and cooling capacity. In carrying out the evaluation, DEP may require information from data center operators and related utilities, rely on existing records and estimates where data is incomplete, and coordinate with BPU. DEP must submit a written report to the Governor and Legislature within 15 months of the act’s effective date, and the act expires after the report is delivered.
The bill does not directly regulate water use by data centers or impose new permitting standards; instead, it creates a temporary reporting and information-gathering mandate for DEP. It would affect data center owners and operators, public water systems, wastewater utilities, sewerage authorities, and other relevant entities that may be asked to provide operational and water-use data. The bill also authorizes DEP to consult BPU data and, if warranted, recommend future legislation, potentially laying the groundwork for later changes to environmental, utility, or data center-related statutes and regulations.
Because there are no recorded committee transcripts or votes in the provided material, the public and legislative sentiment cannot be measured directly from debate or roll call history. Based on the bill’s structure, it appears to be a study-oriented measure rather than a regulatory crackdown, which may make it more broadly acceptable to lawmakers interested in understanding the environmental and infrastructure implications of rapid data center growth. The absence of recorded opposition or support in the supplied history suggests the bill is still at an early stage.
The main area of potential contention is the scope of DEP’s inquiry and the burden of data collection on private operators and utilities. Data center operators may be concerned about disclosure of proprietary operational information, while water utilities and ratepayers may be focused on whether large facilities are increasing demand, costs, or infrastructure needs. Another possible point of debate is the breadth of the definition of “large-scale data center,” especially because it is tied to thresholds to be set later by DEP in consultation with BPU, which could affect which facilities are covered and how expansive the study becomes.