Home / Business and Economy / AI Data Centers Hike NJ Electricity Costs
AI Data Centers Hike NJ Electricity Costs
15 Feb
Summary
- New Jersey electricity costs surged over 33% in two years.
- AI data centers are significantly increasing demand.
- Governor plans solar, battery, and nuclear energy development.
Electricity prices in New Jersey have seen a dramatic rise, escalating by over 33% within the past two years. This surge is partly driven by the substantial energy demands of artificial intelligence data centers. PJM, the grid operator responsible for New Jersey and surrounding areas, forecasts a 20% increase in peak electricity demand by 2030 due to this trend.
In response, Governor Mikie Sherrill declared a state of emergency upon taking office in 2025. She has implemented executive orders to mitigate the affordability crisis. The initial measures focus on providing swift utility payment relief to consumers and prohibiting further price hikes by providers. These actions are complemented by a comprehensive plan to address systemic power supply shortages.
The governor's long-term strategy emphasizes developing new, in-state power sources. This includes expanding solar energy installations, increasing battery storage capacity, and leveraging nuclear energy. Governor Sherrill stated the necessity of both short-term relief and long-term reform to ensure grid reliability and prevent further cost escalations for residents.
