Data centers have quickly become the latest target in New Jersey’s ongoing energy debate.
Concerns about electricity demand, water use, and infrastructure costs should absolutely be discussed and considered. Communities deserve transparency, and existing ratepayers should not be forced to subsidize new development. But that is not the entire story, and simply saying no is not a solution.
In Loudoun County, Virginia, the nation’s largest data center market, taxes on data center equipment are expected to generate approximately $1.3 billion next year, or about 40% of all county tax revenue.
That funding supports schools, roads, public safety, and recreation while helping lower property tax rates. One analysis estimates that the average Loudoun County homeowner would pay approximately $5,800 more each year in property taxes without data center development.
New Jersey has the opportunity to learn from that experience, if we are willing. We can do many things at one time. We can set strong standards and protect ratepayers. But we should also have data center leaders at the table for an honest conversation about our energy future. If their growth is creating new demands on the grid, we should explore how they can help develop and support new generation, transmission, and other infrastructure. However, if they offer community benefits, we should consider those as well. Instead of viewing data centers only as adding to the problem, New Jersey should determine what role they can play in building the solution.
But we shouldn’t reject economic development simply because New Jersey has failed to build enough energy supply. Demand is growing. Whether it is from data centers, manufacturing, electrification, or an increasingly digital economy.
The answer is not to block businesses that need reliable power. It is to bring everyone to the table, protect ratepayers, and build more reliable power to meet the demand of the economy we hope to grow.

