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 individual or entity applying for local development approval to establish an AI data center must submit an energy usage plan to the Board of Public Utilities (BPU) for approval. This plan must outline procedures for energy sourcing, cooling optimization, water usage, building ventilation, and heat utilization from the data center's operations.

The BPU is required to review the energy usage plan within 90 days and can approve it, approve it with conditions, 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.