The Artificial Intelligence Data Center Moratorium and Impact Study Act establishes a six-month moratorium on the approval, construction, expansion, subsidies, and tax incentives for artificial intelligence data centers that have an electrical demand exceeding 10 megawatts. This temporary halt is intended to allow the State of New Jersey to conduct a comprehensive study on the potential impacts of these data centers on various aspects, including utility rates, environmental quality, public health, and local tax structures. Existing data centers operating prior to the act's effective date may continue their operations but will be subject to data reporting requirements based on the recommendations of the newly established commission.

The act also creates the New Jersey Artificial Intelligence Data Center Impact Commission, which will consist of 12 members appointed by state leaders, ensuring diversity in appointments. The commission is tasked with studying the impacts of artificial intelligence data centers across multiple domains, including the electrical grid, water consumption, and labor markets. It is required to hold at least ten public hearings throughout New Jersey and must issue a report with findings and recommendations within 24 months of its formation. The commission will expire six months after the report is issued.