Political spin advances a pro–data center agenda

Governor Mikie Sherrill recently unveiled what she calls “guardrails” for the rapidly expanding data center industry in New Jersey. The problem is that these guardrails are not guardrails at all. They are barely a speed bump on the highway to unchecked data center development.

The governor’s announcement generated headlines suggesting she was taking a tough stance on the environmental and economic impacts of AI data centers. Yet when you look beyond the press releases and talking points, the reality is very different. Her proposal contains no meaningful restrictions on where data centers can be built, no limits on their water consumption, no caps on their energy use, no new environmental protections, no new siting regulations, and no moratorium on approvals while the state studies their impacts.

What Governor Sherrill is offering is not regulation, standards, or legislation. It is political cover.

What is particularly shameful is the green cover provided by a former leading environmental organization, undermining more than 60 environmental, community, and citizen groups that support a statewide moratorium on new data centers. The most troubling moment came when its leadership stood alongside Governor Sherrill as she unveiled policies that do little to address the enormous environmental threats posed by data centers. Their presence helped create the appearance of environmental leadership while the administration continues to advance policies that actively promote the industry’s expansion.

What Governor Sherrill is offering is not regulation. It is not planning. It is not meaningful environmental protection. It is political cover.

The governor continues to oppose a moratorium on new data centers. She has not rescinded the $250 million in Economic Development Authority subsidies available to the industry.

She has proposed no significant new regulations governing siting, water use, energy consumption, pollution, or environmental justice impacts. Instead, her administration is developing policies to accelerate approvals, streamline permitting, remove regulatory obstacles, and help data centers secure additional power supplies.

These are not guardrails. They are green lights.

The four “guardrails” fall apart under scrutiny

Fair share grid rules

The governor’s first pillar requires data centers to pay for their own power generation and grid upgrades.

At first glance, this sounds reasonable. Why should ratepayers subsidize billion-dollar technology companies? But this proposal does not address the bigger problem. Even if data centers pay for certain infrastructure costs, they still place enormous strain on the regional electric grid. They still increase overall electricity demand. They still create pressure for additional power generation. They still contribute to the rising energy costs that New Jersey residents are already struggling to pay.

A large AI-focused data center can consume as much electricity as 100,000 homes. The largest facilities can use enough electricity to power more than 350,000 homes.

The issue is not simply who pays for the wires. The issue is whether New Jersey should be encouraging facilities that consume staggering amounts of electricity while residents face rising utility bills and the state struggles to meet its climate goals.

Transparency reporting

The second pillar requires data centers to report water and energy consumption every six months.

Reporting is not regulation. Transparency is not protection.

Publishing numbers does not reduce water use by a single gallon. It does not lower energy consumption. It does not prevent pollution. It does not protect communities from noise, light, traffic, or environmental degradation.

Large hyperscale data centers can consume between 3 million and 7 million gallons of water every day for cooling systems. That is enough water to supply thousands of homes. In areas already facing water shortages and drought conditions, simply reporting water use is like watching a house burn while keeping careful notes on the temperature.

Community benefits agreements

The third pillar promotes Community Benefits Agreements to help towns negotiate with developers.

This sounds good in theory, but in practice, it often becomes a mechanism for allowing environmental harm in exchange for financial concessions.

Communities should not be forced into a position where they must decide whether a donation to a recreation program or school fund is worth increased pollution, water consumption, noise, and environmental degradation.

Clean air is not negotiable. Safe drinking water is not negotiable. Protection of environmentally sensitive lands is not negotiable.

Communities should not have to bargain away environmental protections in exchange for corporate sweeteners.

Job creation claims

The fourth pillar focuses on prevailing wages and union jobs.

Workers deserve good wages and strong labor protections. But the employment claims surrounding data centers are often greatly exaggerated. Construction creates temporary jobs. Once these facilities are operational, many employ relatively few workers compared with their enormous environmental footprint and land consumption. The irony is difficult to ignore. The same AI technologies being promoted as economic engines are simultaneously eliminating jobs throughout multiple industries.

A facility consuming the power of a small city should provide more than a handful of permanent jobs.

The governor’s actions reveal her real agenda

If Governor Sherrill were truly concerned about data center expansion, she would support a moratorium until New Jersey develops comprehensive regulations and planning standards. She has refused.

If she were serious about protecting taxpayers, she would eliminate the $250 million in EDA subsidies available to data centers. She has not.

If she were serious about environmental protection, she would establish clear restrictions on siting facilities in environmentally sensitive areas. She has not.

Instead, her administration is pursuing policies specifically designed to facilitate industry growth.

The administration is creating regulatory certainty for developers. It is streamlining approval processes. It is reducing obstacles to development. It is helping secure additional energy supplies. It is working to accommodate the industry’s enormous demands rather than questioning whether those demands should be met in the first place.

The message is clear. New Jersey is open for data center business.

The nuclear connection

Perhaps the most significant indicator of the administration’s priorities is its support for expanding nuclear energy to serve future data center demand.

Governor Sherrill supported lifting New Jersey’s 50-year moratorium on new nuclear power development. This move aligns with proposals that would allow expedited approvals for data centers powered by small modular reactors (SMRs).

The nuclear industry has long marketed itself as a climate solution. The reality is that SMRs remain largely unproven, extremely expensive, and years away from widespread deployment. As I have said for years, nuclear power remains the most expensive and dangerous way to boil water. The push for SMRs is not about meeting public needs. It is increasingly about meeting the demands of massive AI infrastructure and hyperscale data centers. The public is being asked to assume the environmental, financial, and safety risks while technology companies reap the benefits.

The Hertz-Shargel appointment raises serious questions

The governor’s appointment of Ben Hertz-Shargel to lead the Board of Public Utilities raises additional concerns.

Before joining the administration, Hertz-Shargel served as a senior executive at Wood Mackenzie, one of the world’s leading energy consulting firms. His work focused heavily on data center expansion, grid modernization, large-load electricity users, natural gas generation, battery storage, and nuclear power development.

His professional experience includes advising hyperscale technology companies, evaluating data center energy strategies, studying natural gas generation for AI facilities, and analyzing the role of SMRs in supporting future data center growth.

While expertise is valuable, the appointment underscores how deeply intertwined the state’s energy planning has become with the needs of the data center industry. The question is whether New Jersey’s energy future will be planned around the needs of residents or the demands of Big Tech.

The environmental costs are real

Data centers are among the most resource-intensive facilities ever constructed.

The industry often promotes itself as clean because it produces no smokestacks. That narrative is misleading. These facilities consume enormous quantities of electricity and water. They rely on diesel backup generators that emit harmful pollutants. They create constant noise from cooling equipment. They generate light pollution 24 hours a day. They require vast amounts of land.

Cooling systems use chemicals to control bacteria, algae, and corrosion. Wastewater discharges can contain concentrated minerals and treatment chemicals. Cooling towers can release chemical drift that travels significant distances beyond facility boundaries. Many advanced cooling systems utilize refrigerants and specialized fluids, some involving PFAS compounds, the notorious “forever chemicals” linked to cancer, reproductive harm, immune system damage, and other health risks.

Yet despite these concerns, New Jersey still lacks comprehensive regulations governing these impacts.

The next environmental justice crisis

Many proposed data center projects are being targeted toward communities that already face disproportionate environmental burdens. These communities often suffer from higher pollution levels, fewer resources, and decades of environmental neglect. Now they are being asked to host facilities that consume massive amounts of electricity and water while offering relatively limited long-term economic benefits.

Without strong regulations, the data center boom could become the next environmental justice crisis.

The same communities that have carried the burden of industrial pollution should not be forced to carry the burden of AI infrastructure.

Data centers: environmental damage and living hell

New Jersey already hosts roughly 80 data centers, with dozens more proposed across the state. At the same time, the state has committed approximately $250 million in subsidies and incentives to support data center development. Governor Sherrill has shown no interest in ending this corporate welfare.

The projects keep getting bigger, and so do their impacts. The new generation of AI data centers consumes unprecedented amounts of electricity, water, and land. They create noise, light pollution, air pollution, traffic, and pressure on local infrastructure. Many communities are beginning to realize that these facilities can turn neighborhoods into industrial zones while providing relatively few permanent jobs.

Consider some of the major projects moving forward across New Jersey:

Vineland — Nebius/DataOne

A 300-megawatt facility that has become one of the largest data center projects in the state. The project includes on-site gas-fired power generation, creating concerns about air pollution, greenhouse gas emissions, noise, and community impacts. Residents are being asked to bear the environmental burden while the profits flow elsewhere.

Kenilworth — CoreWeave

A proposed 250-megawatt AI computing center expected to begin operations by 2027. Local residents have pushed back against what many see as another dirty deal that places corporate interests ahead of community protections.

Secaucus — CoreSite

A 130,000-square-foot facility that opened in late 2025, representing the continued spread of large-scale digital infrastructure throughout New Jersey.

Logan Township — Earth Station 76

Despite approval of this project, community opposition became so strong that Logan Township subsequently moved to prohibit future data center development. Residents saw firsthand what these projects could mean for their quality of life.

Piscataway — Chirisa Technology Parks

A planned 90-megawatt expansion that demonstrates the continuing pressure to build larger and larger facilities throughout the state.

When the state fails, communities fight back. When the people lead, the leaders will follow.

One of the most encouraging developments has been the growing grassroots revolt against data centers. Across New Jersey, local residents have organized, educated their neighbors, attended meetings, challenged developers, and demanded action from elected officials. In many cases, they have succeeded where the state has failed.

In Andover Township, local activists led by my friend Ken Collins successfully fought a proposal for a data center at the former Newton Airport property. Public opposition became so overwhelming that township officials repealed the zoning changes and moved toward banning data centers.

In Monroe Township, Gloucester County, residents fought a proposal to build a massive warehouse-data center complex on 172 acres of farmland. The application was denied, and the township subsequently prohibited data center development.

A growing number of municipalities have adopted bans or severe restrictions, including:

• Andover Township
• East Greenwich Township
• Logan Township
• Millville
• Monroe Township
• Pemberton Township
• Phillipsburg
• Red Bank
• Union Township
• Waterford Township

Additional municipalities are considering restrictions or actively debating limits, including:

• Cherry Hill
• East Windsor
• Harrison Township
• Sayreville
• Summit
• Warren Township

This is becoming a town-by-town battle for New Jersey’s future.

More than 60 organizations have already called for a statewide moratorium on data centers. Yet the state continues to refuse meaningful action.

The lesson is clear.

This is exactly how the Highlands movement began. Local residents fought destructive development project by project, town by town, before coming together to build the political momentum necessary to pass the Highlands Act. The same grassroots energy is emerging today. The people are ahead of the politicians.

Now we need to turn that local momentum into statewide action. We need a moratorium. We need strong regulations. We need comprehensive planning and siting standards. And we need them before New Jersey becomes a sacrifice zone for the AI industry.

Spin and PR, not actions

Governor Sherrill’s data center guardrails may make for a good press conference, but they do little to address the enormous environmental, energy, water, and land-use impacts of this rapidly expanding industry.

These policies are not guardrails. They are talking points. They are not protections. They are public relations.

New Jersey stands at the beginning of what could become one of the largest industrial buildouts in state history. Decisions made today will shape our energy system, water supplies, open space, farmland, forests, and communities for generations.

The AI boom must not become New Jersey’s next environmental disaster. The state needs real regulations, real planning, real transparency, and real public participation, not political spin designed to disguise a pro-data-center agenda.

When a truck is racing toward a cliff, painting a white line on the road is not a safety program. You need a guardrail. Better yet, you need an off-ramp before it is too late. But right now, Governor Sherrill is not building guardrails. She is paving the highway.