Demand for data centers is rapidly growing in New York, but Gov. Kathy Hochul says she wants tech companies to foot the bill for their mammoth energy costs.
Hochul said Thursday that the Public Service Commission will begin reviewing the costs of connecting energy-intensive industries, such as data centers, to the grid. The facilities have been blamed for spiking energy bills nationwide due to the significant power they consume for cloud storage, crypto mining, and AI.
Currently, there are more than 130 data centers statewide, with nearly half located in the New York City metropolitan area, according to Data Center Map, which tracks facilities nationwide. That number is likely to grow.
As of last month, there were 48 projects requesting connections to the grid, totaling more than 11 gigawatts — enough power for roughly 11 million households, according to state grid operators.
One of the data centers in the queue for additional power is Greenidge Generation, the crypto-mining facility that operates a fossil-fueled power plant in the Finger Lakes. The computer farm on the bank of Seneca Lake has requested an additional 200 megawatts, enough to power nearly 200,000 homes. The request is nearly double the plant’s current capacity and has faced pushback from locals in the picturesque region.
As promised, three counties filed a notice of appeal of the new state construction rules on Thursday.
Cape May, Ocean, and Monmouth counties filed court papers describing the state rules adopted in January as “unreasonable, arbitrary, and capricious,” and arguing that the state Department of Environmental Protection lacks the authority to adopt the rules.
A spokesperson for the DEP declined to comment Thursday. Typically, the department does not comment on litigation.
The “Protecting Against Climate Threat (PACT)” and “Resilient Environments and Landscapes (REAL)” regulatory package was published at the tail end of Democratic Gov. Phil Murphy’s second term, with the stated aim of protecting people, communities, and structures from rising sea levels and other impacts of climate change.
The rules had been under discussion for years. There are extensive flood regulations in New Jersey’s coastal zones, including federal flood elevation standards. These rules differ, in part because they anticipate future flood levels based on climate change projections, and in part because they were not enacted as a matter of law by the state Legislature but rather through executive action.
In 2020, Murphy signed an executive order under which the DEP was to incorporate the impacts of climate change into rules governing coastal zone management, flooding, and other state regulations. Rather than relying on historical flood data, the rules were based on projected sea-level projections at the end of the century.
The regulations created a new inundation risk zone, a climate-adjusted flood elevation (CAFE) that elevates future home construction above federal levels, expanded flood maps, and called for nature-based flood protection solutions.
“NJDEP modernized land resource protection rules to better support New Jersey communities, residents, and businesses in building their resilience to sea-level rise, extreme weather, chronic flooding, and other impacts of our changing climate,” reads a statement from the DEP on the rules. Almost two-thirds of New Jersey’s coastline is already at high or very high risk of coastal erosion, and 98% of the coastline is projected to be at medium or very high risk of sea level rise. Over half a million acres of New Jersey land are highly vulnerable to coastal hazards.”
Following the initial public comment period, the DEP amended the rules, reducing projected future flood levels by 1 foot. They are still 4 feet above the Federal Emergency Management Agency base flood elevation. They were adopted Jan. 20, the same day the new governor, Mikie Sherrill, was sworn in, and are set to take effect in July.
Some environmental groups welcomed the rules as a needed response to the changes expected by the end of the century. Officials in many shore communities were far more skeptical, including in Cape May County, where the Board of County Commissioners maintained that the rules, if enacted, would be economically devastating and put affordable housing construction out of reach.
TRENTON – The New Jersey Senate Economic Growth Committee has advanced legislation sponsored by Senators Andrew Zwicker and John Burzichelli, which would require the Board of Public Utilities (BPU) to conduct a study to evaluate the potential deployment of advanced transmission technologies by electric public utilities.
Senator Andrew Zwicker
“Modernizing our grid using advanced transmissiontechnologies is an essential step in lowering energy rates and keeping them down in the future,” said Senator Zwicker (D-Middlesex/Mercer/Somerset/Hunterdon). “By directing the Board of Public Utilities to conduct a comprehensive study, we can identify and prepare to deploy the most promising emerging technologies that will help to increase capacity within our existing lines and strengthen grid reliability, lowering the cost of electricity for families and businesses across New Jersey.”
The bill, S2189, would define “advanced transmission technology” to mean software or hardware that increases the capacity, efficiency, reliability, or safety of an existing or new electric transmission facility. This may include grid-enhancing technologies, advanced or high-performance conductors, or other technologies designed to reduce transmission congestion or increase the capacity, efficiency, reliability, or safety of an existing or new electric transmission facility.
“This legislation is about putting ratepayers first by better using the tools already at our disposal to bring energy costs down,” said Senator Burzichelli (D-Gloucester/Salem/Cumberland).
Senator John Burzichelli
“Greenlighting a new generation of projects will boost our energy supply and lower rates in the future, while deploying advanced transmission technologies now means getting more out of the system we have without waiting for the construction new facilities. The study proposed in this bill will empower the BPU to ensure that we use the most efficient technologies safely and effectively.”
The BPU would study how deploying ATT would enable utilities to safely, reliably, efficiently, and cost-effectively meet electric system demand and provide safe, reliable, and affordable electricity to customers.
The bill would require the BPU to give notice of a public stakeholder meeting and invite interested parties and members of the public to discuss the study required by the bill. The BPU would hold at least two public meetings to review stakeholder comments. The BPU would be able to incorporate any information or comments received from the public stakeholder meetings in its report required by the bill.
Within one year of the bill’s enactment, the BPU would submit a written report to the Governor and the Legislature detailing the study’s findings. The BPU would also publish the report on its website.
Egg Harbor Township, NJ – February 4, 2026 – The Atlantic County Utilities Authority (ACUA) was recognized with a 2026 National Environmental Achievement Award from the National Association of Clean Water Agencies (NACWA) for its microplastics removal project developed in partnership with PolyGone Systems.
Currently operating at ACUA’s wastewater treatment plant in Atlantic City, this first-of-its-kind system captures microplastics from treated wastewater before it is discharged into the ocean. Since its opening in September 2024, the system has successfully removed millions of microplastic particles.
“This award brings much-deserved recognition to PolyGone’s innovation and ACUA’s continued commitment to implementing new technologies that improve our environment,” said ACUA President Matthew DeNafo.
The National Environmental Achievement Awards recognize individuals and NACWA member agencies that demonstrate outstanding leadership in environmental protection and clean water management.
Madeline “Maddy” Urbish, a well-respected adviser on environmental issues to companies and state government, has been named the head of government affairs and policy in New Jersey for Ørsted.
Urbish will be responsible for setting and shaping Ørsted’s legislative and regulatory agenda in New Jersey and for working with government and nongovernmental partners across the state to grow the offshore wind industry in New Jersey and North America.
Urbish brings extensive experience working with state governments and officials on environmental and energy issues.
Most recently, she served as a senior associate at River Crossing Strategy Group, where she represented and advised clients on New Jersey state politics and policies, including energy and environmental protection. Prior to that, she was a policy adviser for Gov. Phil Murphy, with a focus on energy, environment and agriculture policy.
“Maddy’s extensive experience working in energy and in the state will benefit us as we continue to develop the Ocean Wind 1 project and our Ocean Wind 2 bid,” said Fred Zalcman, head of government affairs at Ørsted.
A resident of Lambertville, Urbish previously served on the Lambertville city council and as a member of the Lambertville planning board of adjustments and the Lambertville zoning board of adjustments. Urbish was a member of the board of trustees of the Delaware River Greenway Partnership.
Urbish, a 2017 fellow with the New Leaders Council – New Jersey, received a master’s degree in public administration from the University of Pennsylvania and a bachelor’s degree from the College of New Jersey in history and political science.
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