New Jersey Electric Bills Soar as AI Data Centers Surge

Report warns families and small businesses may be subsidizing Big Tech's energy demands

Apr. 4, 2026 at 12:25am

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A geometric abstract illustration using bold shapes and primary colors to conceptually represent the growing energy demands of AI data centers and their impact on New Jersey's electricity grid and consumer costs.As AI data centers rapidly expand in New Jersey, their outsized energy demands are straining the state's power grid and driving up electricity bills for families and small businesses.Secaucus Today

A new report from the New Jersey Policy Perspective think tank is raising alarms about rapidly rising electric bills in the state, with the main culprit being the explosive growth of AI-powered data centers. The report found that these massive facilities were responsible for 70% of new power demand behind a 20% spike in electric bills in June 2025, and they could consume nearly 10% of New Jersey's total electricity by 2030.

Why it matters

The surge in energy demand from AI data centers is putting significant strain on New Jersey's regional grid operator, PJM Interconnection, which is translating into higher supply costs and higher monthly bills for residents and small businesses. The report argues that families and small businesses are effectively subsidizing Big Tech's expansion through tax incentives and infrastructure support, while having to pay the price through escalating utility bills.

The details

According to the report, a single large data center can use as much power as 100,000 homes. The rapid growth of these facilities has driven 70% of 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. New Jersey offers up to $500 million in tax credits for AI-related projects, even though the facilities themselves create relatively few long-term jobs. Meanwhile, utilities are upgrading infrastructure to handle the demand, and those costs can be passed on to ratepayers.

  • In June 2025, electric bills in New Jersey spiked by 20%.
  • By 2030, data centers could consume nearly 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 and is facing strain from the surge in data center energy demand.

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 issue.

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What’s next

Gov. Mikie Sherrill has moved to freeze some utility rate hikes and push for more in-state energy production, but the report warns those efforts may not be enough if demand continues to surge unchecked.

The takeaway

This case highlights the growing tension between the energy demands of the tech industry and the impact on local communities and ratepayers. It raises questions about the balance between supporting economic growth and protecting consumers, as well as the need for more transparent and equitable policies around data center development and energy usage.