By Jerry Keenan
New Jersey is stepping into what’s being called a clean energy renaissance. With new
policies supporting nuclear energy and a broader commitment to strengthening the grid,
the state is making a serious move toward a more reliable and sustainable future. As reported by BINJE, recent reforms tied to the Salem nuclear plant are designed to
position New Jersey for exactly that kind of long-term transformation.
At the same time, another reality is taking shape across the region. Data centers are
expanding. Fast.
And that’s where the tension begins.
Across New Jersey and the entire Mid-Atlantic, communities are raising real concerns
about data center development. They’re worried about energy demand, rising costs and
whether infrastructure is keeping pace. In places such as Northern Virginia, that
pushback has become impossible to ignore, with residents and local officials
questioning the scale and speed of growth, as outlined in recent reporting from The Washington Post.
Their frustration is real. And in many cases, people are asking the right questions.
When projects move forward without transparency, when communities feel cut out of
the process or when infrastructure lags development, that is a failure. Residents have
every right to demand better planning, smarter siting and clear answers about impact.
But there is a difference between demanding better and demanding nothing at all. They
also should demand that clean energy be part of the same conversation.
Here is what gets lost in the reaction: Data centers are not optional infrastructure. They
are the physical backbone of the modern economy, supporting everything from medical
records and financial transactions to emergency communications and the artificial
intelligence systems reshaping every industry. As the International Energy Association has reported, electricity demand from data centers is expected to rise sharply in the
coming years as digital reliance continues to grow.
That demand is not going away because a town says no. It simply moves somewhere
else and takes the economic opportunity with it.
That is why New Jersey’s clean energy strategy and data center growth must be treated
as one conversation, not two.
If we are serious about attracting and managing data center development, then we must
be just as serious about expanding the energy capacity that supports it and investing in
the infrastructure required for these facilities to operate efficiently and in harmony with
their surrounding environment. That means investing in reliable baseload power such as
nuclear and natural gas, alongside renewables to ensure the grid can handle increased
demand without pushing costs onto residents. The U.S. Department of Energy has been
clear about nuclear’s role in maintaining reliability while reducing emissions.
Done right, this is not a burden. It’s an opportunity.
Data centers bring significant private investment into communities. They generate tax
revenue. And during construction, they create exactly the kind of jobs that have
sustained New Jersey’s middle class for generations. A competitive business climate
benefits both companies and consumers by supporting jobs, growth and downward
pressure on energy costs.
Policies that make it more expensive for data centers to operate in New Jersey could
undermine the state’s competitiveness and push these facilities elsewhere. According
to a PwC analysis, the data center industry contributes billions to the U.S. economy and
supports hundreds of thousands of jobs, particularly in construction and skilled trades.
These are not temporary, low-wage positions. They are careers. Electricians, pipe trade
workers, carpenters, sheet metal workers, laborers and ironworkers are the ones
building this infrastructure, just as they have built every major system this country relies
on.
And there is a simple principle that should guide every one of these projects: hire local.
When local tradespeople build these facilities, the economic benefits stay in the
community. Paychecks are spent locally. Apprenticeships open doors for the next
generation. Families build stability. That is how you turn a project into something that
lasts.
There is also a right way and a wrong way to do this.
As we’ve seen across the Mid-Atlantic, communities push back hardest when projects
deliver little local value. That concern is valid. But there is another path — one that
prioritizes local hiring, sets clear standards and ensures these projects contribute to the
places where they are built.
The mistake would be to treat data centers and energy policy as separate debates.
They are not. They are deeply connected, and the decisions we make now will
determine whether New Jersey leads or falls behind.
We have a choice.
We can slow progress and watch investment, jobs and infrastructure move elsewhere.
Or we can plan smarter, build responsibly and invest in the energy systems that support
growth while making sure the benefits reach our communities.
New Jersey has always been a state that builds.
If we get this right, we won’t just keep up with the future. We’ll help shape it.
Jerry Keenan is President of the New Jersey Alliance for Action.
