
Daniel T. McKillop
Partner
201-896-7115 dmckillop@sh-law.comClient Alert
Authors: Daniel T. McKillop, George A. McGowan, III
Date: August 28, 2026

Partner
201-896-7115 dmckillop@sh-law.com
Partner
732-568-8377 gmcgowan@sh-law.com
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

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 […]
Author: Daniel T. McKillop

Annual sale opens August 19, 2026, giving eligible owners a way to offset grid electricity emissions ahead of upcoming reporting periods New York City’s Local Law 97 (LL97) was enacted as part of the city’s Climate Mobilization Act of 2019 and is one of the nation’s most ambitious building decarbonization programs. Codified in the New […]
Author: Daniel T. McKillop

Congress has taken a significant step toward delaying the sweeping federal restrictions on intoxicating hemp products scheduled to take effect this November. On August 8, 2026, the U.S. Senate approved a short-term federal funding measure that includes a hemp ban delay, postponing the implementation of most new federal hemp restrictions for approximately one month, from […]
Author: Daniel T. McKillop

Disputes surrounding New Jersey data centers are intensifying as the State positions itself as a leader in artificial intelligence, cloud computing, and advanced technology infrastructure. Recent proceedings in Vineland and ongoing litigation in Monroe Township illustrate the growing tension among local land-use control, energy concerns, environmental impacts, and statewide economic development objectives. The outcomes of […]
Author: Daniel T. McKillop

On August 5, New Jersey entered the 90 days before the November 3, 2026 general election. For incumbent officials who are on the ballot, that date activated a longstanding ELEC regulation, N.J.A.C. 19:25-10.10, under which NJ election communications rules can treat routine governmental updates as reportable political activity. Our Public Law group first covered this […]
Author: Mark Tabakin

Industry Faces Continued Uncertainty Ahead of the November 2026 Deadline The U.S. Senate has introduced a funding measure that would temporarily delay implementation of sweeping federal hemp restrictions scheduled to take effect on November 12, 2026. While the proposal provides a potential short-term reprieve for hemp-derived cannabinoid manufacturers, retailers, distributors, and investors, it does not […]
Author: Daniel T. McKillop
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!