New Jersey Governor Phil Murphy has thrown a wrench into the state's efforts to increase transparency around massive artificial intelligence data centers, vetoing legislation that would require them to disclose their water and electricity use.
Murphy's conditional veto means the bill will not be finalized without significant changes. The governor wants lawmakers to make several key modifications, including directing regulators to assess whether data centers are unfairly burdening other ratepayers with their power and cooling demands.
The original bill required data center operators to report their utility use within six months of its signing. However, Murphy's conditional veto would extend that timeline until January 2027, sparking concerns from lawmakers that this delay will undermine transparency and make it difficult for regulators to respond effectively.
Senate Majority Leader Teresa Ruiz, a Democrat, expressed frustration with the proposal, stating that delaying action will lead to "irreversible impacts" and weaken the state's ability to address the issue. She vowed to continue fighting for transparency in the 2026 legislative session.
Murphy's veto also seeks to bar the release of information about data centers' utility use under public records laws, except for anonymized information disclosed in a report on their energy consumption. This move has raised concerns that the state is prioritizing industry interests over public access to critical information.
The issue highlights the growing importance of artificial intelligence data centers in New Jersey's economy and the need for policymakers to strike a balance between promoting growth and ensuring transparency and accountability. As the governor-elect takes office next year, Ruiz signaled that this issue will remain a top priority, despite the delay imposed by Murphy's conditional veto.
Murphy's conditional veto means the bill will not be finalized without significant changes. The governor wants lawmakers to make several key modifications, including directing regulators to assess whether data centers are unfairly burdening other ratepayers with their power and cooling demands.
The original bill required data center operators to report their utility use within six months of its signing. However, Murphy's conditional veto would extend that timeline until January 2027, sparking concerns from lawmakers that this delay will undermine transparency and make it difficult for regulators to respond effectively.
Senate Majority Leader Teresa Ruiz, a Democrat, expressed frustration with the proposal, stating that delaying action will lead to "irreversible impacts" and weaken the state's ability to address the issue. She vowed to continue fighting for transparency in the 2026 legislative session.
Murphy's veto also seeks to bar the release of information about data centers' utility use under public records laws, except for anonymized information disclosed in a report on their energy consumption. This move has raised concerns that the state is prioritizing industry interests over public access to critical information.
The issue highlights the growing importance of artificial intelligence data centers in New Jersey's economy and the need for policymakers to strike a balance between promoting growth and ensuring transparency and accountability. As the governor-elect takes office next year, Ruiz signaled that this issue will remain a top priority, despite the delay imposed by Murphy's conditional veto.