The New Jersey Business and Industry Association (NJBIA) testified on March 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 legislation, known as 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 around the clock. NJBIA Vice President of Government Affairs Ray Cantor told the Senate Energy & 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 play a role in the future, it is not currently feasible to rely solely on renewables or new nuclear plants for such continuous operations. 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 past power plant closures have shifted New Jersey from being an energy exporter to an importer, leading to regional deficits and higher costs. “That’s the way it had been for a century. Businesses came to New Jersey and were able to connect to the grid. Unfortunately, that is no longer the world we live in,” Cantor said.
NJBIA serves as the nation’s largest statewide employer association representing private-sector employers throughout New Jersey across various sectors according to its official website. The association advances competitive excellence and financial success for its members while providing essential information and services according to its official website. Michele Siekerka serves as president and chief executive officer according to its official website. NJBIA also facilitates partnerships among businesses, government entities, and academic institutions according to its official website, offering advocacy, practical information, and cost-saving benefits according to its official website.
The Senate Energy and Environment Committee voted to advance the bill.
