A wave of new AI data centers across New Jersey could reshape the state’s power grid — and increase costs for the households paying for it.
A July 2026 report from New Jersey Policy Perspective warned that growing electricity demand from large-scale data centers could push residential electric bills higher in the coming years. One major project driving attention is a $1.8 billion AI data center under construction in Kenilworth, about four miles from Summit-area communities.
The concern is simple: data centers use enormous amounts of power. A single large facility can consume as much electricity as 100,000 homes, and New Jersey already has more than 48 data centers with additional projects planned.
“We have seen a marked increase in customer complaints about their bills,” said Brian Lipman, director of the New Jersey Division of Rate Counsel.
The report found electricity demand forecasts through 2030 have grown significantly in recent years, largely because of data center expansion.
Critics argue that residents could end up paying for costly grid upgrades needed to support new facilities — even if those projects later close.
The report also noted that while data centers require major infrastructure, they typically create relatively few permanent jobs compared with other large commercial developments.
New Jersey lawmakers passed a bill July 1 requiring the Board of Public Utilities to create new rate standards for data centers using at least 50 megawatts of power. The bill now awaits action from Gov. Mikie Sherrill.
The governor’s administration has also proposed requiring data center developers to cover their own grid upgrade costs and disclose electricity and water usage every six months.
Some communities are already resisting expansion. Warren Township in Somerset County voted in June to ban AI data centers, with officials calling for stronger statewide protections.
As more projects move forward, state officials and residents are debating a key question: who should pay for the massive power demands created by the AI boom?
