For generations, New Jersey has succeeded because we built the infrastructure
industries needed to grow. We built the ports, highways, rail systems, power plants,
telecommunications networks, and industrial facilities that made our state an economic
leader.
Today, the next generation of infrastructure is digital infrastructure — and data centers
are at the center of it.
These facilities support nearly every part of modern life. They power healthcare
systems, emergency services, financial institutions, logistics networks, schools, cloud
computing, and the digital economy that businesses and residents rely on every day. As
artificial intelligence and advanced technologies continue to grow, the demand for
secure, reliable digital infrastructure will only increase.
The question facing New Jersey is simple: will we help build that future here, or will we
allow those jobs, investments, and tax revenues to move to other states?
According to the Data Center Coalition, New Jersey’s data center industry contributed
more than $17 billion to the state’s economy in 2023 and supported more than 96,000
jobs through direct, indirect, and induced economic activity. The industry also generated
nearly $2 billion in state and local tax revenue. Those numbers matter because they
help fund public services, infrastructure improvements, schools, and local communities
across our state.
Nationally, the industry now supports millions of jobs and hundreds of billions of dollars
in economic activity. Each data center job supports more than six additional jobs
elsewhere in the economy.
But beyond the statistics, there is another important reality.
These projects create real opportunities for the men and women of New Jersey’s
building trades. Ironworkers, electricians, laborers, operating engineers, pipefitters,
carpenters, sheet metal workers, and countless other skilled tradespeople are helping
build the infrastructure of the future.
And contrary to some misconceptions, these projects are overwhelmingly being built
with union labor because developers and operators understand that this is highly
specialized work that requires a world-class skilled workforce. These are sophisticated
facilities with complex energy, mechanical, cybersecurity, and reliability requirements.
Owners know they need experienced union tradesmen and tradeswomen who know
how to deliver projects safely, efficiently, and at the highest level of quality.
That does not mean every concern raised about data center development should be
ignored. Residents have legitimate questions about electricity demand, transmission
infrastructure, environmental impacts, and responsible planning. Those concerns
deserve serious attention.
But there is a difference between responsible oversight and blanket opposition.
Simply saying “no” to data centers will not stop the digital economy from growing. It will
only guarantee that investment and jobs go elsewhere while New Jersey still consumes
the same digital services every resident and business depends on.
Governor Sherrill is taking the right approach by focusing on responsible growth instead
of reactionary opposition. Her recently announced framework establishing guardrails
around energy demand, infrastructure investment, transparency, and community
impacts recognizes that New Jersey can protect residents, strengthen infrastructure,
and create good-paying jobs at the same time if we approach this thoughtfully.
That means modernizing our electric grid, investing in smarter transmission systems,
encouraging new energy generation, expanding battery storage technologies, and
requiring developers to meet environmental and efficiency standards. It means
thoughtful planning, not fear-driven policymaking.
New Jersey is uniquely positioned to lead in this space because we already have many
of the assets companies are looking for: proximity to major markets, strong
infrastructure networks, a highly skilled workforce, and a long history as a hub for
finance, telecommunications, logistics, and technology. There is a reason major
financial exchanges and technology infrastructure have historically gravitated toward
New Jersey.
We should build on that advantage — not surrender it.
As someone who spent my career in the building trades, I understand that growth must
be done responsibly. All we do is build. But we need to build carefully, thoughtfully, and
with respect for the communities where these projects are located.
New Jersey can strike that balance.
What we cannot afford to do is fall behind while other states seize the economic
opportunities of the future.
Bill Mullen is the President of the New Jersey Building and Construction Trades Council
