Former New Jersey assemblyman urges Governor Sherrill to pause AI data center expansion due to power grid stress.

Union County, NJ — Former New Jersey Assemblyman Jamel Holley is urging Gov. Mikie Sherrill to issue an executive order temporarily suspending pending and proposed AI data centers and other high-energy computing facilities until the state's electric grid can be fully evaluated.

Holley framed his request as complementary to legislation already awaiting the governor's signature—the Burzichelli-McKeon bill—which seeks to shield utility customers from bearing the costs associated with large data centers. His concern centers on operational alerts issued by PJM Interconnection, the regional power grid operator serving New Jersey and 13 other states, amid high electricity demand and extreme summer heat.

"Power grid operator PJM Interconnection has been issued a federal alert and is urging reduced electricity consumption across its entire territory," Holley said. "This is driven by widespread generator outages, severe overloading on transmission lines, and a massive surge in air conditioning use from this prolonged sweltering heat."

Holley argues that New Jersey's electric grid is critical infrastructure and warrants additional precautions before new energy-intensive facilities come online. His proposal calls for suspending approvals for AI facilities and data centers drawing electricity from the PJM grid or New Jersey utilities until conditions stabilize.

The proposal also requires municipalities to submit inventories of existing, proposed, and planned data center projects to the New Jersey Board of Public Utilities, which would conduct a formal assessment including at least one public hearing featuring testimony from residents, government agencies, utility experts, and environmental organizations. Future approvals, Holley recommends, should prioritize hiring New Jersey's skilled workforce and deliver measurable economic benefits to local communities.

"We must act with care to prevent unchecked energy demands from these facilities from jeopardizing homes, hospitals, schools, and businesses across New Jersey," Holley said.

Holley emphasized that he opposes neither artificial intelligence nor economic development, but believes a temporary pause would provide time to evaluate the impact of growing electricity demand on the state's energy infrastructure.