New Jersey
New Jersey's data-center policy landscape is a live, escalating fight: on June 30, 2026 the Legislature passed A796, a first-in-the-nation ratepayer cost-shift tariff bill (50 MW threshold, 85% take-or-pay) now on Gov. Mikie Sherrill's desk, weeks after Sherrill's May 27 Comprehensive Plan to regulate data centers and after a 60+ organization coalition urged a temporary halt (MGRID, Saul Ewing).
ILens Signals
Civic/Governance Barriers activates on moratorium-class action (C1), meaningful 2026 race (C3) — governance instruments on the electoral, legislative, and regulatory surface (protocol §10; Overview Civic breakout). Weather/Climate activates on extreme-heat large-load curtailment affecting power infrastructure (W3): U.S. DOE Federal Power Act §202(c) emergency orders in 2026 (including Nos. 202-26-23, 202-26-33, 202-26-33a, and 202-26-35) authorized PJM to direct ≥50 MW large loads — the hyperscale data-center profile — onto onsite backup generation during heat-wave reliability emergencies as a last resort before or during EEA Level 3 (DOE Order 202-26-23; DOE Order 202-26-35). Capital Flows/Insurability is a dominant stressor: A796's 85% take-or-pay financial guarantees, cost-shift-off-ratepayers design, and 'unique and not duplicative' showing are core ratepayer-protection/cost-allocation mechanisms, and Rate Counsel warns other bills (A4881) could shift 40-year nuclear cost risk onto ratepayers (MGRID, NJ Rate Counsel A4881 letter). Energy/Power (PJM grid strain, clean-power mandates) is co-dominant (Nixon Peabody). Water/Geology is a secondary stressor via S3379 water-usage reporting (NJ Senate Dems).
IIKey 2026 Races
Bayonne mayoral race (May 12, 2026): former Council President Sharon Ashe-Nadrowski defeated Councilman Loyad Booker (who championed the council's anti-data-center resolution) ~65%-28%, with data centers among the debated issues (New Jersey Globe, Insider NJ). Statewide, Gov. Mikie Sherrill (elected 2025) has made data-center ratepayer protection a governing priority via her Comprehensive Plan (Saul Ewing).
IIIMoratorium · Ban Status
No enacted statewide moratorium/ban, but a 60+ organization coalition urged the state to temporarily halt approval and construction of large-scale data centers (spring 2026), and Bayonne's council adopted resolutions opposing data centers within city borders and authorizing a study to rescind the zoning that made them a permitted use (Saul Ewing, Insider NJ, gathergov).
IVRatepayer · Cost-Shift Legislation
A796 (Assemblyman David Bailey Jr.) passed both chambers June 30, 2026: directs the BPU to write tariffs for data centers >=50 MW (lowered from 100 MW), requires 85% take-or-pay financial guarantees over a 10-year term, shifts grid-connection costs off residential ratepayers, and prioritizes cutting power to data centers before homes in emergencies — now on Gov. Sherrill's desk (a prior 100 MW version was pocket-vetoed by ex-Gov. Murphy) (MGRID). S680 (Smith/McKeon) requires new AI data centers/crypto to source new Class I renewable or new nuclear power and file BPU-approved energy plans (triggered once a majority of PJM states adopt similar rules); it advanced from committee to Senate Budget & Appropriations (March 2026) (NJ Legislature S680, Nixon Peabody). S3379 (Ruiz/Mukherji) requires twice-yearly water/energy usage reports to the BPU (NJ Senate Dems). Prior law P.L.2025 c.98 directs a BPU study on data-center cost impacts due Oct. 2026 (Pashman Stein).
VBallot Measures
None identified. No Nov 2026 statewide New Jersey data-center ballot measure was identified; activity is legislative and municipal (Saul Ewing).
VITop Contested Sites
New Hook Road / Bayonne peninsula site: council reversed course to block a permitted-use data center after protests; a formal ordinance rescinding the December zoning amendment is anticipated (gathergov, Insider NJ).
VIITalent · Workforce
VIIIData Center Cluster Size
Growing cluster within the PJM footprint; A796/S680 are framed around rapid data-center growth straining transmission and capacity costs in New Jersey and the broader PJM region (Nixon Peabody).
IXKey Quote
"I am halting any tax incentives... until we have strong protections in place" framing is Massachusetts; for NJ: Gov. Sherrill announced a 'Comprehensive Plan to regulate data centers in an effort to protect ratepayers from increased costs' (May 27, 2026) (Saul Ewing).