New Jersey would pause permits for large AI data centers

State and local bodies and utilities would be barred from approving, permitting, subsidizing, or offering tax breaks for covered construction or expansion. This covers centers built mainly for AI work with electrical demand over 10 megawatts. Expansion includes added power demand or data capacity. Covered centers already operating before the bill takes effect could keep operating. The pause would begin as soon as the bill becomes law and last six months.

New Jersey would create a 12-member commission to study AI data centers and recommend rules. Its work would cover centers built mainly for AI work that demand over 10 megawatts of electricity and their effects on power, water, and communities. The commission would hold at least 10 public hearings across northern, central, and southern New Jersey. The commission would report to the Governor and Legislature within 24 months after it organizes and end six months after its report.