Assemblyman Gregory Myhre (R-9) | Official Website
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D. L. Lane | Sep 23, 2025

Bill would speed permits for AI data centers powered by small modular reactors

Assemblyman Gregory Myhre announced plans to introduce legislation that would require expedited state approval and permitting for artificial intelligence data centers powered by onsite small modular reactors (SMRs).

“If New Jersey intends to be economically competitive, Trenton must demonstrate to private sector companies that it recognizes AI data centers and SMRs represent the future in terms of computer technology and meeting the rapidly increasing demand for energy,” Myhre said. “This bill eliminates the bureaucratic red tape that New Jersey has an unenviable reputation for that has, for decades, scared off capital investment resulting in lost opportunities for job creation.”

There are currently more than 70 data centers in New Jersey, primarily located in the northern region. These facilities are mainly used for general computing purposes. In contrast, new AI-focused data centers—such as one nearing completion in Vineland—are designed specifically for machine learning tasks like generative AI and large language models.

AI data centers use significantly more energy compared to traditional ones. According to the International Energy Agency, these facilities could account for nearly 3% of total global electricity consumption by 2030 and are projected to grow at a rate four times faster than other sectors’ electricity usage.

Small modular nuclear reactors can generate up to 300 megawatts of power and are assembled on site after being prefabricated elsewhere. Companies including Microsoft and Amazon have shown interest in using SMRs to supply power to their data centers in states such as Pennsylvania, Washington State, and Virginia.

Myhre emphasized the importance of requiring data centers to generate their own energy due to recent shifts toward clean energy policies. He noted ongoing challenges with rising electric bills and inadequate capacity from current providers, which has led New Jersey to import electricity from neighboring Pennsylvania—a state dependent on coal, natural gas, and nuclear sources.

In late 2024, Myhre introduced the Small Modular Nuclear Energy Incentive Act (A-5103), aiming to establish a program where private developers could submit bids for per-megawatt-hour incentives through a competitive process. That measure is currently under review by the Assembly Telecommunications and Utilities Committee.

“New Jersey has no choice but to incentivize the construction of AI data centers and SMRs or else watch as other states enjoy the economic benefits such high paying jobs, reliable energy production and increased tax revenue collections,” Myhre said.

Senator Carmen Amato Jr. and Assemblyman Brian Rumpf have agreed to co-sponsor Myhre’s forthcoming bill on expedited permitting. The legislation will be formally introduced after lawmakers return later this year.

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