The New Jersey Business and Industry Association (NJBIA) testified on Mar. 16 against a bill that would require new artificial intelligence data centers and cryptocurrency mining facilities in New Jersey to use only electricity from newly constructed nuclear plants or other renewable sources. The proposed legislation, S-680, would prohibit these energy-intensive operations from using electricity generated by natural gas.
The issue is significant because data centers and cryptocurrency mining facilities consume large amounts of electricity and operate continuously. NJBIA Vice President of Government Affairs Ray Cantor told the Senate Energy and Environment Committee, “We don’t oppose the solution of having large data centers bringing their own power. The major concern, however, we have with this legislation is its emphasis on clean energy, on renewables. Data centers need to run 24/7, 365 days a year; and you cannot do that with renewables alone.”
Cantor said that while more nuclear power could be available in the future, it is not currently feasible to rely solely on renewables or new nuclear plants for such facilities. He pointed out that natural gas remains a major source of electricity in New Jersey, accounting for about 47% of total net generation in 2024, while nuclear provided 44% and other renewables about 9%, according to the U.S. Energy Information Administration.
Cantor suggested amending the bill so it applies only to larger AI data and cryptocurrency facilities with a peak load of at least 100,000 megawatts monthly. “At the very least you should have this apply to only the very large AI data centers, not just any AI data center,” he said.
He also noted that numerous power plant closures over the past decade have turned New Jersey from a net exporter to a net importer of energy, leading to regional deficits and increased costs. “If you want to have a conversation about a mix of maybe natural gas or a firm capacity generation and renewables, that could work for the industry. But renewables alone won’t work,” Cantor said.
The NJBIA serves as the nation’s largest statewide employer association representing employers across various sectors according to its official website. It advances competitive excellence and financial success for its members while delivering essential information and services according to its official website. Michele Siekerka serves as president and chief executive officer according to its official website. The association supports private-sector employers throughout New Jersey according to its official website, facilitates partnerships among businesses, government entities, and academic institutions according to its official website, and offers advocacy along with cost-saving benefits according to its official website.
The Senate Energy and Environment Committee voted to advance the bill.
