Assemblyman Gregory Myhre (R-9) said Wednesday he will introduce a bill to require expedited state approval and permitting for new and existing artificial intelligence data centers powered by onsite small modular reactors (SMRs).
“If New Jersey intends to be economically competitive, Trenton must demonstrate to private sector companies that it recognizes AI data centers and SMRs represent the future in terms of computer technology and meeting the rapidly increasing demand for energy,” Myhre said. “This bill eliminates the bureaucratic red tape that New Jersey has an unenviable reputation for that has, for decades, scared off capital investment resulting in lost opportunities for job creation.”
New Jersey has over 70 data centers, mostly in the northern part of the state, designed for general purpose computing. By contrast, AI data centers, one of which is nearly completed in Vineland, are optimized for machine learning workloads such as generative AI and large language models.
On average, AI data centers can use up to 20 times more energy than a traditional center. They are expected to consume nearly 3% of the total global electricity consumption by 2030, and grow 15% annually, “more than four times faster than the growth of total electricity consumption from all other sectors,” according to the International Energy Agency.
Small modular nuclear reactors, which are prefabricated reactors that are shipped and assembled on site, can produce up to 300 megawatts of power. Companies such as Microsoft and Amazon are exploring SMR use for data centers in Pennsylvania, Washington State and Virginia.
Requiring data centers to provide their own energy is critical since the current administration has shifted the focus to "clean energy” sources, Myhre said. The state is facing an energy crisis that has sent electric bills skyrocketing and existing power providers unable to meet existing customer demand, forcing New Jersey to import energy from neighboring Pennsylvania, which heavily relies on coal, natural gas and nuclear for its electricity.
Myhre previously introduced the Small Modular Nuclear Energy Incentive Act (A-5103) in late 2024 that would create a state program to allow private developers of small modular nuclear reactors to submit bids for per-megawatt-hour incentives through a competitive process. That bill has been referred to the Assembly Telecommunications and Utilities Committee.
“New Jersey has no choice but to incentivize the construction of AI data centers and SMRs or else watch as other states enjoy the economic benefits such high paying jobs, reliable energy production and increased tax revenue collections,” Myhre said.
Senator Carmen Amato Jr. and Assemblyman Brian Rumpf, (both R-9) have also signed on to sponsor Myhre’s new bill requiring expedited permitting, he said. The bill will be officially introduced after the Legislature returns to Trenton in late autumn.
