New Jersey governor has a plan to stop residents’ electricity bills from subsidizing massive data center energy costs

Utility bills have seen huge jumps across the country, and the rapid expansion of AI data centers is partly to blame.

One state is standing up to the hikes with protections aimed at stopping these energy guzzlers from driving up residents’ energy bills.

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New Jersey Gov. Mikie Sherrill has announced a statewide strategy to tackle the impact of data centers on energy demand, and hold owners accountable (1).

“By establishing these guardrails, we will hold data centers accountable, ensure they contribute their fair share, and make sure our communities not only benefit from the AI innovation happening in our state, but have a real hand in shaping it,” Sherrill said in a release.

In 2025, electric and gas utilities requested nearly $31 billion in rate increases, which was more than double from 2024’s total of $15 billion, according to research by nonprofit PowerLines (2).