NJBIA testified on Monday against legislation that could effectively pull the plug on the development of new artificial intelligence data centers and cryptocurrency mining facilities in New Jersey by prohibiting them from utilizing electricity generated from natural gas. 

The bill, S-680, would require that energy-intensive AI data centers and cryptocurrency mining facilities, which also have high-powered computers that consume significant electricity, to derive all their power from new newly constructed nuclear power plants and/or other renewable energy sources, such as solar, wind, and geothermal.  

“We don’t oppose the solution of having large data centers bringing their own power,” NJBIA Vice President of Government Affairs Ray Cantor told the Senate Energy & Environment Committee. “The major concern, however, we have with this legislation is its emphasis on clean energy, on renewables. Data centers need to run 24/7, 365 days a year; and you cannot do that with renewables alone. 

“Maybe at some point in time, more nuclear power comes to play, but for right now, that cannot be done as a practical matter,” Cantor said. 

 Natural gas, which is not considered renewable energy, is currently a major source of New Jersey’s electric power generation. In 2024, natural gas accounted for about 47% of New Jersey’s total electricity net generation, nuclear power provided 44% and other renewable sources accounted for about 9%, according to the U.S. Energy Information Administration. 

Cantor also suggested the bill be amended to apply only to larger AI data and cryptocurrency facilities that have a peak load of 100,000 megawatts monthly. 

“At the very least you should have this apply to only the very large AI data centers, not just any AI data center,” Cantor said. 

Cantor said that in an ideal world, the legislation would not be needed at all because New Jersey would have sufficient electrical generation available for any business that wanted to come here and help grow the state’s economy. 

“That’s the way it had been for a century. Businesses came to New Jersey and were able to connect to the grid. Unfortunately, that is no longer the world we live in,” Cantor said. 

Numerous power plant closings over the past decade have changed New Jersey from a net exporter of energy to a net importer, Cantor said. “So now we’re left with a situation where data centers or AI and crypto folks want to come into New Jersey and connect, and we don’t have sufficient power, and that has led to a deficit throughout the whole PGM region, and that has led to cost increases. 

“We understand the problem. We do not oppose the solution of having large AI generators coming here and bringing their own power,” Cantor said. “If you want to have a conversation about a mix of maybe natural gas or a firm capacity generation and renewables, that could work for the industry. But renewables alone won’t work.” 

The Senate Energy and Environment Committee voted to advance the bill.