This bill mandates that all electricity supplied to artificial intelligence (AI) data centers in New Jersey must come from new verifiable Class I renewable energy sources, nuclear power plants, or a combination of both, ensuring there is no net decrease in the supply of these energy sources to the transmission and distribution system. Additionally, any applicant seeking local development approval for an AI data center must submit an energy usage plan to the Board of Public Utilities (BPU) for approval. This plan must outline strategies for energy sourcing, cooling optimization, water usage, building ventilation, and utilizing waste heat for heating purposes.

The BPU is required to review the energy usage plan within 90 days and can approve, conditionally approve, or disapprove it, providing reasons for any disapproval. The bill also prohibits AI data centers from connecting to the electric grid without BPU approval of their energy usage plan. Furthermore, the BPU must monitor other states in the PJM region to determine if they have similar energy supply requirements for AI data centers and publish its findings when a majority of these states implement such requirements.