New Jersey Bill to Tax Data Centers for Electricity Usage Advances to Governor
New Jersey's legislature has passed a bill that imposes a tariff on data centers for their electricity usage, aimed at alleviating the financial burden on consumers due to increased power demand. The legislation, which affects data centers with a monthly demand of at least 100 megawatts, awaits Governor Phil Murphy's signature and will take effect one year post-enactment. In related developments, Microsoft has committed to covering the electricity costs of its data centers and working with utilities to address grid impacts.
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New Jersey's legislature passed a bill requiring data centers to pay a tariff for their electricity use, aimed at protecting consumers from rising costs due to increased demand on the power grid. The bill mandates utilities to submit plans for tariffs on data centers with a maximum monthly demand of at least 100 megawatts.
The legislation is supported by state senators who argue that data centers' energy needs unfairly burden homeowners. If signed by Governor Phil Murphy, the law will take effect one year after enactment. In related news, Microsoft pledged to cover the electricity costs of its data centers and collaborate with utilities to mitigate impacts on the grid, amidst rising concerns over AI data centers' influence on electricity prices.
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