Requires DEP to conduct study of short and long term effects of water use by large-scale data centers.

A3966 1R

[First Reprint]

ASSEMBLY, No. 3966

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ROBERT J. KARABINCHAK

District 18 (Middlesex)

Assemblyman� RAVI S. BHALLA

District 32 (Hudson)

Assemblywoman� ALIXON COLLAZOS-GILL

District 27 (Essex and Passaic)

Co-Sponsored by:

Assemblymen Scharfenberger, Sampson and Kearney

SYNOPSIS

���� Requires DEP to conduct study of short and long term
effects of water use by large-scale data centers.

CURRENT VERSION OF TEXT

���� As reported by the Assembly Environment and Solid
Waste Committee on March 16,� 2026, with amendments.

��

An Act
requiring DEP to conduct an evaluation of the effects
of water use by large-scale data centers.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in this act:

���� �Artificial intelligence� or
�AI� means a machine-based system that can, for a given set of human-defined
objectives, make predictions, recommendations, or decisions influencing real or
virtual environments.

���� �Board� means the Board of
Public Utilities.

����
1
[
�Data center�
means a facility primarily used for the storage, management, and processing of
digital or artificial intelligence data.� �Data center� includes facilities
that house computer and network systems, including servers, network equipment
and appliances, telecommunications, storage systems, monitoring systems,
Internet-related equipment and services, data communications connections,
environmental controls, fire protection systems, and security systems and
services.
]
1

���� �Department� means the
Department of Environmental Protection.

����
1
�Large-scale
data center� means a facility primarily used for the storage, management, and
processing of digital or artificial intelligence data that meets or exceeds
thresholds established by the department, in consultation with the board, based
on factors including, but not limited to, water use, electric demand, physical
size, cooling capacity, computing capacity, or other indicators of substantial
resource consumption.� �Large-scale data center� includes facilities that house
computer and network systems, including servers, network equipment and
appliances, telecommunications, storage systems, monitoring systems,
Internet-related equipment and services, data communications connections,
environmental controls, fire protection systems, and security systems and
services.
1

���� 2.��� a.� No later than one
year after the effective date of this act, the department shall conduct an
evaluation of the effects of water use by large-scale data centers on drinking
water systems, wastewater systems, and the environment.� The evaluation shall include,
but not be limited to, the following information:

���� (1)� the short-term effects of
water use by large-scale data centers, measured over the preceding three years;

���� (2)� the long-term effects of
water use by large-scale data centers, measured over the preceding seven years;

���� (3)� the anticipated effects
of water use by large-scale data centers that may be constructed in the future,
as distinct from existing large-scale data centers;

���� (4)� any efforts undertaken by
the department or by large-scale data center operators to reduce the use of
water by large-scale data centers;

���� (5)� how the use of water by
large-scale data centers has impacted overall State water use and costs;

���� (6)� how the use of water by
large-scale data centers has affected the operational efficiency, cooling
requirements, or uptime of the data center due to water constraints;

���� (7)� the direct or indirect
costs associated with the use of water by large-scale data centers, including
impacts on public water systems, ratepayers, or infrastructure upgrades
required to meet demand;

���� (8)� an analysis of any
feasible water use reduction strategies which could be implemented by any
large-scale data centers operated in the State; and

���� (9)� any other information
which the department determines to be necessary to produce a comprehensive
study.

���� b.�
1
In
conducting the evaluation required pursuant to subsection a. of this section,
the department may:

����
(1) �require the owner or
operator of a large-scale data center, public water system, wastewater utility,
sewerage authority, or other relevant entity to submit such information as the
department deems necessary, including, but not limited to, information related
to:

����
(a) �total annual and
monthly water use;

����
(b) �peak seasonal demand;

����
(c) �the sources of water used
and the percentage obtained from each source;

����
(d) �whether the water used
is potable, reclaimed, or other non-potable water;

����
(e) �cooling technology or
cooling method employed;

����
(f) �material operational
changes affecting water consumption; and

����
(g)� any significant water
reuse, recycling, or conservation practices;

����
(2) �rely on permit
records, utility records, estimates, and any other reasonably available
information, if historical data is unavailable, incomplete, or inconsistent;
and

����
(3) �consult and coordinate
with the board and utilize any relevant data reported to the board pursuant to
State law.

����
c.
1
� No
later than fifteen months after the effective date of this act, the department
shall submit a written report, to the Governor and, pursuant to section 2 of
P.L.1991, c.164 (C.52:14-19.1), to the Legislature, concerning the findings of
the evaluation conducted pursuant to subsection a. of this section.� The report
may include, at the discretion of the Commissioner of Environmental Protection,
recommendations for legislation to improve the laws of this State concerning
the use of water by large-scale data centers.

���� 3.��� This act shall take
effect immediately and shall expire upon submission of the written report to
the Governor and the Legislature pursuant to section 2 of this act.