NJ bill adds surcharge on data centers to fund upgrades

Establishes surcharge for electric public utility service to certain data centers during certain periods; establishes "Grid Modernization Fund" in BPU.

Introduced· 2026-01-13

Who's it for

Who's it for: Everyday People

What it means for you

7/10Helps you

Good for everyday people ·

Cost shiftHeavily funded

Plain‑English summary, cross‑checked against the official bill text.

The bill would make big data centers pay extra for electricity during peak times, and put that money into a fund to improve the state’s power grid.

Our take

What we think, in plain words.

If passed, data centers will face higher electric bills during busy periods, shifting some cost to them while the state uses the money to modernize the grid, which could mean fewer outages for everyday users.

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The facts

What the bill actually says, no spin.

A "large load data center" is defined as a facility using at least 50 megawatts each month.
Electric utilities must add a surcharge for these data centers during peak demand periods.
All surcharge money must be sent to the new Grid Modernization Fund.
The fund can only be used for projects that upgrade New Jersey’s electrical grid.
The Board of Public Utilities will manage the fund and set rules for its use.