New Jersey Enacts Water and Energy Reporting Requirements for Data Centers

New Jersey now requires every data center in the state to report its water and energy usage to the New Jersey Board of Public Utilities (BPU) every six months, under legislation (S3379/A4096) signed by Governor Mikie Sherrill on August 27, 2026. The law took effect immediately and requires data centers that have operated for at least a year to report by November 2026 and newer facilities to report within the next six months.

Key takeaways:

• Data centers operating for at least one year must file their first report within three months of the August 27, 2026 effective date; all other facilities have six months.
• The BPU will publish the reports on its website within 30 days of receipt, making the submitted information, including service agreement details, publicly available.
• Data centers receiving State financial incentives must also report performance and sustainability metrics, which remain confidential.
• Operators must give the BPU 60 days’ advance notice of substantial operational or technology changes affecting their reports.

What Does the New Law Require?

The owner or operator of a data center in New Jersey must prepare and submit a semiannual water and energy usage report to the BPU. Each report must identify the facility, its owner or operator, its address, and when it commenced operation, and must detail total energy consumption, including energy used for cooling, the electric public utility serving the facility and any electric service agreements, all on-site and backup power supplies with related permit information, the energy consumption of information technology equipment, total and peak daily water input, and all water sources, including whether the water is potable or reclaimed and any agreements with a public water system. The BPU may require additional information as it deems necessary.

Will the Reports Be Public?

Yes, in most respects. The BPU must publish each report on its website within 30 days of receipt, so information regarding electric service agreements and water service arrangements may become publicly available through the reporting process. The exception is the enhanced data required from data centers that receive a State financial incentive: those facilities must also report performance and sustainability metrics such as power usage effectiveness, water usage effectiveness, energy reuse, and renewable energy factors, but that information is treated as confidential and is exempt from public records disclosure, except in anonymized form aggregated across at least five facilities.

How Long Do the Requirements Last?

The reporting obligation applies for three years from a facility’s first submission, after which the BPU will determine whether to make it permanent through rulemaking. In the meantime, operators must notify the BPU at least 60 days before implementing any substantial change in operations or technologies that would require an update to a submitted report.

Part of a Broader Regulatory Framework

S3379/A4096 builds on S731/A796, enacted earlier this summer, which created a separate rate structure for data centers and requires them to cover the costs associated with their energy demand and related grid infrastructure rather than shifting those costs to other ratepayers. The State has also released separate but related guidance to help municipalities negotiate stronger Community Benefits Agreements and has launched technical assistance resources through the EDA, DEP, and BPU, giving local governments greater leverage to address community impacts while securing infrastructure, workforce, and other local investments.

Together, these measures signal that New Jersey is assembling a comprehensive regulatory framework for data center development. As we detailed in previous client alerts covering municipal data center bans, the resulting litigation, and the Vineland and Monroe developments, local restrictions continue to spread across the state, and advocacy groups are pressing for further statewide action. Owners, operators, and developers should treat the new reporting obligations as a baseline, begin assembling the required data now, and carefully review the terms of their data center service agreements and other arrangements that may now be subject to public disclosure.

Frequently Asked Questions

Which facilities must comply with New Jersey’s data center reporting law?

Every data center in New Jersey, meaning a facility whose primary services are the storage, management, and processing of digital data and that houses computer and network systems. The law excludes facilities used primarily for internal operations by a licensed health care facility or provider, provided they do not operate as commercial data processing or colocation facilities for unaffiliated entities.

When is the first report due?

Data centers that have been in operation for at least one year as of August 27, 2026, must file within three months of that date. Newer data centers must file within six months of August 27, 2026. Reports are due semiannually thereafter.

Do all data centers have to report sustainability metrics?

No. Performance and sustainability metrics, including power usage effectiveness and water usage effectiveness, are mandatory only for data centers that receive a financial incentive from a State agency. Other facilities may submit them voluntarily.

What happens after the three-year reporting period?

The BPU will decide whether to continue the requirement permanently. If it does, the BPU must adopt implementing rules and regulations under the Administrative Procedure Act, in coordination with the Department of Environmental Protection.

We Can Help

Scarinci Hollenbeck’s attorneys continue to monitor New Jersey’s evolving data center regulations and counsel owners, operators, and developers across New Jersey, New York, and beyond. For guidance on complying with the new reporting requirements or navigating data center development issues, contact Daniel T. McKillop or George A. McGowan.