This bill mandates the New Jersey Department of Environmental Protection (DEP) to conduct a comprehensive evaluation of the short and long-term effects of water use by large-scale data centers. The study will assess various aspects, including the short-term effects over the past three years, long-term effects over the past seven years, and the anticipated impacts of future data centers. Additionally, it will examine efforts to reduce water usage, the overall impact on state water use and costs, and the operational efficiency of data centers in relation to water constraints. The evaluation will also explore the direct and indirect costs associated with water use and identify feasible water reduction strategies.

The DEP is required to submit a written report detailing the findings of the evaluation to the Governor and the Legislature within fifteen months of the act's effective date. The Commissioner of Environmental Protection may also include recommendations for legislative improvements regarding water use by large-scale data centers. The act will take effect immediately and will expire upon the submission of the report.