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 and respond to the energy usage plan within 90 days, and no AI data center can connect to the electric grid without this approval.

Furthermore, the bill requires the BPU to monitor other states within the PJM region to identify if they have similar energy supply requirements for AI data centers. If a majority of these states implement such requirements, the BPU must publish its findings in the New Jersey Register and on its website within 30 days. This legislation aims to address the growing energy demands of data centers while promoting the use of clean energy sources and ensuring environmental sustainability.