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How much water and energy do data centers consume? NJ bill demands answers - A new bill on Governor Phil Murphy’s desk could make New Jersey the first state to require data centers to publicly report their energy and water use. As AI and cloud computing drive soaring electricity demand, this move could set a national precedent for balancing digital growth with responsible resource management.
New Jersey could soon become the first state to pull back the curtain on data center energy and water use.
A bill now on Governor Phil Murphy’s desk would require data centers to publicly report how much electricity and water they use every quarter. If signed, it would make New Jersey one of the first states in the country to demand this level of transparency from one of the fastest-growing industries in the world.
Data centers run around the clock to power AI, cloud computing, and online services. They draw huge amounts of electricity to keep servers running and millions of gallons of water to prevent them from overheating. Supporters of the bill say that kind of impact deserves public oversight.
Right now, data centers account for about 4.4% of U.S. electricity use, and experts expect that number to triple by 2028. In New Jersey, where power bills rose roughly 20% this summer, lawmakers want to know how much of that demand comes from large-scale computing.
If the measure passes, operators would have to release regular reports detailing total energy and water use. Those numbers would be available to regulators, lawmakers, and the public—offering insight into an industry that usually keeps such data confidential.
Environmental advocates say the move is essential for long-term planning and fairness, especially as AI-driven power demand puts pressure on utilities and infrastructure. Critics, including the New Jersey Business & Industry Association (NJBIA), warn that the law could discourage new development and add redundant reporting costs.
The debate mirrors what’s happening in other states. New York, Illinois, and Georgia are exploring similar policies, and regions like the Great Lakes are studying the water impact of hyperscale data centers. Together, these efforts point to a bigger question: how to balance the digital economy’s rapid growth with responsible use of shared resources.
Transparency alone won’t fix those challenges, but it’s a starting point. Public data can help policymakers plan smarter, help utilities prepare for demand, and help communities understand the tradeoffs that come with digital infrastructure.
Governor Murphy hasn’t said whether he’ll sign the bill. If he does, New Jersey could set a national example for how states manage the real-world costs of the AI boom.
What do you think—should data centers be required to disclose how much energy and water they use?