Key developments
New Jersey seeks data centers to pay power costs
Gov. Mikie Sherrill said on May 27 that her administration is working with lawmakers on a bill that would require data centers using 100 megawatts or more to cover at least 85% of their requested electricity costs for at least 10 years. She also backed regular reporting of energy and water use and said the Department of Community Affairs will develop community-benefit guidelines for host towns. The proposal comes amid rising New Jersey electricity bills and growing local resistance to large AI and data center projects.
Why it matters
It would shift more grid and infrastructure costs onto large users instead of residential ratepayers.
Sources & driving stories
GOTHAMIST · Mike Hayes
Gothamist coverageWHYY
WHYY coverageCalifornia Senate passes data center cost bills
The California Senate passed SB 886 and SB 887 on May 26, sending both measures to the Assembly. SB 886 would direct the California Public Utilities Commission to create a special tariff so transmission costs tied to large data centers are recovered from those facilities, while SB 887 would add water-use, clean-energy, and full-cost-payment conditions for Environmental Leadership Development Project certification and clarify that data centers are not ministerial CEQA-exempt projects. The votes were 27-8 and 29-9.
Why it matters
The package could become a model for how California allocates grid costs and reviews new data center projects.
Sources & driving stories
CALIFORNIA STATE SENATOR STEVE PADILLA
California State Senator Steve Padilla coverageTeraWulf acquires Kentucky campus for gigawatt buildout
TeraWulf said it acquired the Muskie Data Campus in EastPark Industrial Park in Kentucky, a roughly 285-acre site with optional expansion acreage. The company said the campus is expected to support more than 1 gigawatt of data center capacity over time, with 500 megawatts targeted for the second half of 2028 and the remainder targeted for the second half of 2030. The site already has pre-signed utility agreements and a 345 kV substation linked to Kentucky Power's 765 kV transmission buildout.
Why it matters
It adds a large, power-backed hyperscale development site to the pipeline.
Sources & driving stories
NASDAQ
Nasdaq coverageWorth noting
WORTH NOTING
Elemental launches hyperscaler-backed data center initiative
The new DCII aims to fund and validate cooling, storage, infrastructure, and low-carbon materials technologies in operating data centers and demonstration sites.
WORTH NOTING
Pennsylvania PUC recommends large-load tariff model
The commission's nonbinding guidance would push large energy users, including data centers, to pay full infrastructure and upgrade costs, but it still lacks enforceable requirements.
WORTH NOTING
Court halts Pine Island data center construction
A temporary injunction against the Google-backed project in Minnesota shows how environmental-review disputes can still slow large data center builds.
Still unclear
OPEN QUESTION
Will New Jersey's cost-sharing bill survive negotiations?
The proposal is still being negotiated, and the final payment threshold will determine how much cost shifts away from ratepayers.
OPEN QUESTION
Can California's Assembly keep the tariff language intact?
SB 886 and SB 887 still need Assembly approval, so the scope of cost recovery and permitting constraints remains unsettled.