N.J. Assembly Advances Bill to Protect Ratepayers from Data Center Energy Costs
Legislation led by Assemblyman Dave Bailey Jr. aims to ensure large-scale data centers cover their own energy demands without passing costs onto New Jersey residents and small businesses.
TRENTON — Legislation designed to shield New Jersey residents and small businesses from rising electricity costs tied to large-scale data centers cleared the General Assembly on Monday, March 23, 2026.
Sponsored by Assemblyman Dave Bailey Jr. (D-Gloucester, Salem, Cumberland), along with Assembly members Joe Danielsen, Clinton Calabrese and Eliana Pintor Marin, Bill A796 seeks to ensure that public utility customers are not burdened with subsidizing the growing energy demands of data centers.
“Data center growth will drive up the cost of electricity if we don’t create guardrails,” Bailey said. “We want to make sure data centers pay for the energy they use and the infrastructure they need, not our constituents. This bill is about protecting ratepayers while supporting responsible economic growth.”
As demand for artificial intelligence and digital infrastructure continues to expand, lawmakers say the state must take proactive steps to prevent increased strain on the power grid—and on everyday consumers’ utility bills.
Under the legislation, electric utilities would be required to establish special rules for large-load data centers—defined as facilities with peak electricity demands of 100 megawatts or more. The goal is to protect other customers from increased transmission and distribution costs.
Mark Tyler
The bill would also authorize the New Jersey Board of Public Utilities (NJBPU) to require financial guarantees, ensuring that data centers pay for at least 85% of the energy capacity they request over a minimum 10-year period. Additionally, the measure encourages energy efficiency practices within these facilities.
“Ratepayers continue to feel the strain as more and more large load customers come online to accommodate the growing dependence on artificial intelligence,” Danielsen (D-Middlesex, Somerset) said. “We cannot, must not, allow ratepayers to shoulder the cost of this innovation.”
Lawmakers emphasized that while innovation and economic development remain priorities, they must be balanced with affordability and fairness for residents.
“Technology—and our reliance on it—continues to grow, but that growth cannot come at the expense of New Jersey families and small businesses,” Calabrese (D-Bergen, Passaic) said. “This legislation would ensure that large-scale data centers contribute their fair share.”
Mark Tyler
Assemblywoman Pintor Marin (D-Essex, Hudson) added that rising energy costs are already impacting households and local economies across the state.
“The last thing New Jersey families and small businesses need is to carry the added burden of powering large-scale data centers,” she said. “This is about protecting affordability and making sure our energy system works for the people who call New Jersey home.”
Why This Matters to Atlantic City
As Atlantic City continues to balance economic development with affordability, energy costs remain a key concern for residents, small businesses and local institutions. Legislation like Bill A796 could help prevent future spikes in utility bills as high-demand industries expand across New Jersey.
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