S731/A796 — Data center ratepayer protection and grid-demand
New Jersey — S731/A796 — Data center ratepayer protection and grid-demand requirements
New Jersey · P.L.2026, c.32 (A796/S731, Data Center Fair Share), approved July 7, 2026; N.J.S.A. 48:7-6.2
- Status
- In effect
- Took effect
- July 7, 2026
- Applies to
- Data center operators with 100 MW or more of contracted electricity in New Jersey
New Jersey Governor Sherrill signed S731/A796, the Data Center Fair Share law (P.L.2026, c.32), on July 7, 2026, and it took effect immediately. It puts large data centers, those requesting 100 megawatts or more of peak load, on a special utility tariff. They must post deposits or other security and guarantee they will pay for at least 85 percent of the electricity they request for 10 years, the costs of serving them are assigned to them, and during grid emergencies they are cut back before residential customers. The Board of Public Utilities has 12 months to set the standards, and utilities then file tariffs. The law is designed to stop ordinary ratepayers from subsidizing grid capacity reserved by large data centers.
Who is protected: New Jersey electricity ratepayers (prevents subsidization of large data center grid costs)
Legal detail
New Jersey P.L.2026, c.32 (A796 4R / S731), approved July 7, 2026, effective immediately (C.48:7-6.2). Covers large data center customers requesting 100 MW or more of peak load (the BPU may set a lower threshold, not greater than 50 MW, per utility). BPU must within 12 months set standards, and each electric public utility must within 180 days afterward petition for a tariff that: (1) requires financial guarantees to pay for at least 85% of the electricity supply requested for 10 years; (2) requires deposits, financial security or other commitments sufficient to protect other ratepayers from a material rate increase; (3) allocates the associated costs to large data center customers; and (4) provides priority curtailment of large data center customers before residential customers (excluding designated critical load) during system emergencies. Final passage June 30, 2026: A796 substituted for S731, Senate 27-11, Assembly concurrence 59-18; Governor signed July 7, 2026.
Key facts
| Jurisdiction | New Jersey |
|---|---|
| Level | State |
| Strength | Limited |
| Enacted | July 7, 2026 |
| Citation | P.L.2026, c.32 (A796/S731, Data Center Fair Share), approved July 7, 2026; N.J.S.A. 48:7-6.2 |
| Topics | data-center siting and energy · consumer protection · government use of AI |
| Bill text | NJ S731/A796 — Data center ratepayer protection and grid-demand — official record (pub.njleg.state.nj.us) |
More AI rules in New Jersey
- NJ Forbidding the Algorithmic Inflation of Rent (FAIR) Act · Enacted (not yet in effect)
- New Jersey S3379/A4096 data center transparency (2026) · In effect
- NJ developer litigation against municipal data center bans (2026) · Blocked / in litigation
- New Jersey Quijano AI data center delay and study commission bill (2026) · Proposed / pending
- NJ S4754 AI unauthorized practice of professions · Proposed / pending
- NJ S4758 AI companion disclosure · Proposed / pending
Related data-center siting and energy rules elsewhere
- Superior WI Data Center Moratorium (1-year) · In effect
- Dane County WI Hyperscale Data Center Moratorium · In effect
- Madison WI Data Center Moratorium (1-year) · In effect
- Manitowoc County WI Data Center Moratorium · In effect
- WA SB 5982 (Data Center / Clean Energy) · In effect
- Dayton OH data center moratorium (180-day, Apr 2026) · In effect
See something wrong or out of date? Submit a correction. Every entry must carry a verifiable source.