Governor proposes regulations to prevent AI data centers from inflating residential electricity bills amid surging utility rate hikes.
New Jersey Governor Mikie Sherrill unveiled a plan to curb data center energy costs from being passed to residents. The strategy aims to hold data center owners accountable for their share of rising energy demand, addressing concerns over affordability and local impact.
Utility rate increase requests nearly doubled to $31 billion in 2025 from $15 billion in 2024, per PowerLines research. Residential electricity rates rose 10.2% year-over-year in March, pressuring household budgets as AI-driven data center expansion accelerates.
The proposal seeks to balance AI innovation with community benefits, ensuring residents are not burdened by escalating energy expenses tied to data center operations.