Why are data centers so expensive?
Data centers are typically large warehouse facilities with powerful computers that store information, run artificial intelligence software and keep digital services operating around the clock. To accomplish this they use tremendous amounts of water and electricity.
The growth of data centers has increased concern about pollution and public health nationwide. As much as 5 million gallons of drinking water must be used daily to run data center operations.
Some New Jersey towns are fighting efforts to build data centers.
In Vineland, residents have filed a lawsuit, claiming an AI data center is emitting a loud humming noise that is interfering with daily life.
In Monroe Township, town officials moved to ban data centers in April following local concern over a proposed 1.6 million-square-foot warehouse facility. The ban, which defines data centers as facilities tied to artificial intelligence, cloud computing and cryptocurrency operations, also bans land use considered similar to data centers.
Vineland and Monroe Township are not the only municipalities in New Jersey that have moved to ban data centers this year. Andover Township, Logan Township and Millville, among others, have proposed or implemented data center bans, too.
What’s next?
Democratic state Sen. Troy Singleton represents the 7th Legislative District in Burlington County and chairs the NJ Senate Community and Urban Affairs Committee. Singleton issued a statement applauding Sherrill’s announcement and then made a proposal of his own.
“I am proposing the ‘Responsible Data Center Development and Resource Protection Act,’ which would establish a comprehensive statewide framework governing the siting, utility and environmental impacts, water usage, and public accountability of large-scale data centers in New Jersey,” Singleton stated.
Singleton went on to state that the proposed legislation is designed to balance legitimate and competing public policy priorities.
“It supports responsible economic development and technological innovation while protecting residential and small-business electric ratepayers from unfair infrastructure cost shifting,” he stated. “It will also seek to safeguard New Jersey’s drinking water supply and environmental resources, preserve grid reliability amid rapidly increasing electricity demand, and encourage redevelopment of appropriate industrial and brownfield sites instead of environmentally sensitive lands.”
In addition, New Jersey Business and Industry Association President and CEO Michele Siererka released a statement following Sherrill’s announcement.
“NJBIA appreciates the Sherrill administration proactively addressing the opportunity for data center development in New Jersey,” Sierkerka said in the statement. “This is a signal that this growing and critical industry is welcome in the Garden State.”
“Like all development, opportunities and challenges are presented, and getting the right balance to move projects forward is significant. The governor’s parameters and expectancy of transparency are some first steps in establishing a process to get the ball rolling.
