SR18

A Senate Resolution urging states in the PJM Interconnection region to adopt measures requiring data centers to obtain their electricity from new zero- or low-emission sources of energy.

Whereas, Data centers in the United States utilize immense amounts of energy and account for four percent of electricity consumption, according to the Electric Power Research Institute; and

Whereas, The United States Department of Energy has reported that data centers can consume of up to 10 to 50 times as much energy as a typical office building; and

Whereas, Data centers in the United States are expected to consume double the amount of their current electrical demand by 2030, up to 35 gigawatts, which is enough electricity to power more than 26 million average homes; and

Whereas, Electric grids across the country are struggling to accommodate the growing electrical demands, many of which have already reached generation capacity and face transmission bottlenecks which hinder economic growth and negatively impact utility consumers; and

Whereas, PJM Interconnection (PJM) is a regional transmission organization that services the State of New Jersey, the District of Columbia, and 12 additional states, is responsible for managing and operating the high voltage, multi-state electric grid, coordinates the flow of electricity from power plants to local utilities, and operates the wholesale energy market; and

Whereas, In 2023, PJM cited rising energy and peak growth demands from data centers as a key driver of electrical demands in the region; and

Whereas, Governments that foster the development of zero- and low-carbon power will attract investment into computational infrastructure and clean-power technologies from corporations around the world, according to the Tony Blair Institute for Global Change; and

Whereas, Companies in the United States, such as Google, have already begun to partner with clean energy companies to develop data centers located together with grid-connected carbon-free energy to expand electricity capacity with reliable secure power sources as a result of increased regional electric grid demands; and

Whereas, Clean energy sources, such as solar and land-based wind energy, are some of the most rapidly scalable and cost competitive ways to meet increased electricity demand from data centers; and

Whereas, State legislators play a critical role in accelerating the implementation of solutions needed to support demand growth along with meeting climate change goals; and

Whereas, It is therefore fitting and proper for this House to urge states within the PJM region to enact policies that require data centers to obtain their electricity from new zero- or low-emission energy sources; now, therefore,

Be It Resolved by the Senate of the State of New Jersey:

1. This House urges all states in the PJM Interconnection region to adopt measures that require data centers to source their electricity from new clean energy sources.

2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Secretary of the Senate to the Governor and Lieutenant Governor of the State of New Jersey, the Governor of the State of Delaware, the Governor of the State of Illinois, the Governor of the State of Indiana, the Governor of the Commonwealth of Kentucky, the Governor of the State of Maryland, the Governor of the State of Michigan, the Governor of the State of North Carolina, the Governor of the State of Ohio, the Governor of the Commonwealth of Pennsylvania, the Governor of the State of Tennessee, the Governor of the Commonwealth of Virginia, and the Governor of the State of West Virginia.

STATEMENT

This resolution urges states within the PJM Interconnection region to enact policies that will require data centers to obtain their electricity from new zero- or low-emission sources of energy. Data centers consume approximately four percent of the electricity in the United States, and that is expected to increase to nine percent by 2030, according to the Electric Power Research Institute. At the rate at which electric consumption is projected to grow, regional electric grids will likely be unable to meet these demands. Regional electric grids across the United States are currently becoming less reliable and secure due to the increase in electricity consumption, in part caused by the rapid growth of data centers. As a result, the need for clean energy to support the demands of data centers in the PJM Interconnection region is critical in order to alleviate the load on the electric grid. Clean energy sources will be able to take on the burden of supplying electricity to existing data centers and provide long term sustainability for the increase in demand by data centers over time.