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Secaucus Today
By the People, for the People
New Jersey Electric Bills Rising Due to AI Data Centers
Report warns families and small businesses may be subsidizing Big Tech's expansion
Apr. 3, 2026 at 9:25pm
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As AI data centers continue to drive up electricity demand in New Jersey, the state faces tough choices in balancing economic growth and energy sustainability.Secaucus TodayA new report from the New Jersey Policy Perspective think tank is raising concerns about rapidly rising electric bills in the state, driven primarily by the surge in energy demand from the proliferation of AI-powered data centers. The report calls for policy changes to make data centers pay more of their own energy costs, require transparency on their energy and water usage, and scale back tax subsidies for large tech projects.
Why it matters
The rapid growth of AI data centers is putting significant strain on New Jersey's electrical grid, leading to higher supply costs that are being passed on to residential and small business ratepayers. Without policy interventions, the report warns that electric bills could continue to spike, the state may become more reliant on fossil fuel plants, and the grid could face increased risk of strain during extreme weather events.
The details
According to the report, AI data centers made up 70% of the new energy demand in a key regional auction, and by 2030 they could consume nearly 10% of all electricity in New Jersey. This surge in demand is putting pressure on the regional grid operator, PJM Interconnection, which helps set electricity pricing across the state. As a result, the demand spike is already translating into higher supply costs and higher monthly bills for residents.
- In June 2025, electric bills in New Jersey spiked by 20%.
- By 2030, data centers could consume 10% of New Jersey's total electricity.
The players
New Jersey Policy Perspective
A progressive think tank that authored the report on the impact of AI data centers on New Jersey's electric bills.
PJM Interconnection
The regional grid operator that helps set electricity pricing across New Jersey.
Gov. Mikie Sherrill
The governor of New Jersey who has moved to freeze some utility rate hikes and push for more in-state energy production in response to the rising electric bills.
What’s next
State leaders are already scrambling to respond to the rising electric bills, with Gov. Mikie Sherrill moving to freeze some utility rate hikes and push for more in-state energy production. However, the report warns that these efforts may not be enough if the demand from AI data centers continues to surge unchecked.
The takeaway
This case highlights the growing impact of the tech industry's energy-intensive operations on local communities, raising questions about the balance between supporting economic development and protecting ratepayers from the burden of rising energy costs. It underscores the need for policymakers to carefully consider the long-term implications of incentives and subsidies for large tech projects.
