This bill mandates the New Jersey Department of Environmental Protection (DEP) to conduct a comprehensive study on the short and long-term effects of water usage by large-scale data centers. The evaluation will assess various aspects, including the impact of water use on drinking water systems, wastewater systems, and the environment. Specific areas of focus will include short-term effects over the past three years, long-term effects over the past seven years, anticipated future impacts, efforts to reduce water usage, and the overall implications for state water use and costs. The study will also explore the operational efficiency of data centers in relation to water constraints and identify feasible water use 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. Additionally, the Commissioner of Environmental Protection may include recommendations for legislative improvements concerning water use by large-scale data centers. The act will take effect immediately and will expire upon the submission of the report.