New Jersey Governor Phil Murphy has dealt a blow to transparency efforts, conditionally vetoing legislation aimed at increasing disclosure of data center water and electricity use. The proposed law would have required the Board of Public Utilities to ask if New Jersey ratepayers are unfairly subsidizing data centers, examine whether their infrastructure is only benefiting them, and estimate how much of utility bills go towards data centers' demands.
Murphy has instead asked lawmakers to add provisions that aim to streamline related efforts to evaluate data centers' impacts on the state's resources. The changes would delay reporting requirements by two years, requiring data center operators to file reports by January 2027 – rather than just six months after the bill is signed into law as originally intended.
The proposed delay has sparked concerns among lawmakers, who argue that delaying action will undermine transparency and make it harder to respond effectively to potential issues. Senator Teresa Ruiz, D-Essex, called the move "undermining transparency" and warned that irreversible impacts may already be in place by the time a report is completed.
Murphy's conditional veto also directs the Board of Public Utilities to identify policies that can defray data centers' impact on rates and gauge their economic benefits. The governor has long been an advocate for artificial intelligence as a source of economic growth, and his administration has taken steps to encourage its development in New Jersey.
However, critics argue that this latest move will only serve to further entrench the interests of data center operators at the expense of ratepayers. As AI data centers continue to expand across the state, concerns about their impact on energy consumption and affordability are growing. With Murphy barred from seeking a third term, it's unclear whether lawmakers will be able to push for changes in his place.
The conditionality of Murphy's veto has sparked uncertainty among lawmakers, who have until the end of the lame-duck session – following this year's gubernatorial and Assembly elections – to consider whether to override it. If they do, it could set a national precedent for data center transparency.
Murphy has instead asked lawmakers to add provisions that aim to streamline related efforts to evaluate data centers' impacts on the state's resources. The changes would delay reporting requirements by two years, requiring data center operators to file reports by January 2027 – rather than just six months after the bill is signed into law as originally intended.
The proposed delay has sparked concerns among lawmakers, who argue that delaying action will undermine transparency and make it harder to respond effectively to potential issues. Senator Teresa Ruiz, D-Essex, called the move "undermining transparency" and warned that irreversible impacts may already be in place by the time a report is completed.
Murphy's conditional veto also directs the Board of Public Utilities to identify policies that can defray data centers' impact on rates and gauge their economic benefits. The governor has long been an advocate for artificial intelligence as a source of economic growth, and his administration has taken steps to encourage its development in New Jersey.
However, critics argue that this latest move will only serve to further entrench the interests of data center operators at the expense of ratepayers. As AI data centers continue to expand across the state, concerns about their impact on energy consumption and affordability are growing. With Murphy barred from seeking a third term, it's unclear whether lawmakers will be able to push for changes in his place.
The conditionality of Murphy's veto has sparked uncertainty among lawmakers, who have until the end of the lame-duck session – following this year's gubernatorial and Assembly elections – to consider whether to override it. If they do, it could set a national precedent for data center transparency.
so they're gonna delay reporting on data centers' water & electricity use for 2 more years?? that's insane! I mean I get it they wanna make sure the info is accurate but come on... we need to know where our tax dollars are going, especially when it comes to energy consumption. and now they're asking lawmakers to add provisions that only benefit data centers? like what about the people who actually live in NJ?! 
this whole thing stinks of favoritism towards big business and corporate interests 
, think its a big deal for transparency efforts in nj, but i guess you gotta love the governor's AI ambitions 
! adding provisions to streamline reporting requirements might seem like a good idea, but delaying action by two years feels like a step backward 
. senator ruiz is totally right that undermining transparency will hurt ratepayers and future generations 
. can't help but wonder if lawmakers have the guts to override murphy's veto and make some real changes 
#TransparencyMatters #DataCenterDisclosures #NJPolitics
. I mean, have you seen the way they handle the crystal thingies? It's like, totally mesmerizing 
. Anyway, back to data centers... I wonder if we'll ever get to see a world where AI is all sustainable energy and stuff 
. That'd be awesome!
i mean, isn't the point of this whole thing to make sure ratepayers aren't getting ripped off? 
... it's all so confusing! 
and what's up with these "streamlined efforts" anyway? does that just mean they'll be able to gloss over the real issues & stick to some watered-down version of transparency? 
. The fact that Governor Murphy's conditional veto has put the brakes on transparency efforts in New Jersey makes me wonder if we're allowing special interests to hijack the conversation 
. Maybe this is a lesson in the power of collective action – if lawmakers don't step up to override the veto, we'll be left with a status quo that doesn't serve our best interests 
.
It seems like he's all about AI growth and "streamlining efforts", but is that just code for "we're gonna make data centers rich and ratepayers will pay the price"? 
. As someone who's all about transparency, it feels like he's just trying to water down the bill to benefit his AI buddies 
. Can't lawmakers push back against this veto and fight for what's right? The people of NJ deserve to know how their rates are being used 
.