This bill mandates that all electricity supplied to artificial intelligence (AI) data centers and cryptocurrency mining facilities in New Jersey must come from new verifiable Class I renewable energy sources or newly constructed nuclear power plants, ensuring that there is no net decrease in energy supplied to the transmission and distribution system. Additionally, any applicant seeking local development approval for such facilities 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 make a determination on the plan within 90 days of submission.

Furthermore, the bill prohibits any AI data center or cryptocurrency mining facility from connecting to the electric grid without BPU approval of their energy usage plan. The BPU is also tasked with monitoring other states in the PJM region to identify if they have similar energy supply requirements and must publish its findings when a majority of those states implement such regulations. This legislation aims to address the growing energy demands of data centers and cryptocurrency mining while promoting the use of clean energy sources in New Jersey.