A trio of legislators announced Tuesday that they would seek to halt hundreds of millions in tax incentives designated for artificial intelligence data centers in New Jersey.
The bill — to be led by Assemblymen Andrew Macurdy (D-Summit) and Balvir Singh (D-Burlington Twp), and state Sen. Joe Cryan (D-Union Twp) — would aim to recoup about $250 million in planned tax incentives for data centers, the legislators said. The proliferation of energy-intensive data centers has become a top concern for voters of late; polls have found that a majority of New Jerseyans want a moratorium on data center construction.
The sponsors said the savings would be directed toward “ratepayer relief” for those hit hard by burgeoning utility costs, as well as investments into energy storage and solar energy production.
“Tax credit incentives for large AI data centers, which use huge amounts of energy and other resources—driving up costs for residents—are no longer the best use of government resources in 2026,” Macurdy said. “This bill will save the state $250 million and return that money to ratepayers and invest in clean energy generation and storage that will help drive down rates.”
The sponsors said their bill will look to reshape the 2024 Next New Jersey tax credit program, which pledged a $250 million award to a data center in Union County.
The legislators said they plan to formally introduce the legislation later this month.
“We need to prioritize people first, not corporations,” Singh said. “We must ensure our state’s investments prioritize affordability, reliability, and long-term sustainability for residents. This proposal redirects resources toward direct ratepayer relief and clean energy solutions that can strengthen our grid, expand energy capacity, and help lower costs for working families across New Jersey.”
Several polls have found New Jerseyans to be displeased with the development of data centers across the state. An April poll found New Jerseyans want a temporary halt to data center construction, and in May, a majority said they would support measures banning the facilities from their towns. Congressional candidates are beginning to incorporate this anger into their campaigns.
“This is about putting residents first and making sure our resources are working for the people of New Jersey,” Cryan said.