Directs planning boards to submit certain data center development plans to BPU and State Planning Commission and requires State Planning Commission approval for data center development under MLUL; excludes data centers from economic development subsidies.

S3611

SENATE, No. 3611

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� JOSEPH P. CRYAN

District 20 (Union)

SYNOPSIS

���� Directs planning boards to submit certain data center
development plans to BPU and State Planning Commission and requires State
Planning Commission approval for data center development under MLUL; excludes
data centers from economic development subsidies.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning the development of data centers in
the State, amending P.L.1975, c.291, and supplementing P.L.1974, c.80
(C.34:1B-1 et seq.).

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

���� 1.��� Section 3.1 of P.L.1975,
c.291 (C.40:55D-4) is amended to read as follows:

���� 3.1.
"Data
center" means a facility in this State:

����
(1) whose primary services
are the storage, management, and processing of digital data, including, but not
limited to, artificial intelligence applications; and

����
(2) that is used to house
computer and network systems, including associated components such as servers,
network equipment and appliances, telecommunications, and data storage systems,
systems for monitoring and managing infrastructure performance, Internet-related
equipment and services, data communications connections, environmental
controls, fire protection systems, and security systems and services.

���� "Days" means
calendar days.

���� "Density" means the
permitted number of dwelling units per gross area of land that is the subject
of an application for development, including noncontiguous land, if authorized
by municipal ordinance or by a planned development.

���� "Developer" means
the legal or beneficial owner or owners of a lot or of any land proposed to be
included in a proposed development, including the holder of an option or
contract to purchase, or other person having an enforceable proprietary interest
in such land.

���� "Development" means
the division of a parcel of land into two or more parcels, the construction,
reconstruction, conversion, structural alteration, relocation or enlargement of
any building or other structure, or of any mining excavation or landfill, and
any use or change in the use of any building or other structure, or land or
extension of use of land, for which permission may be required pursuant to
P.L.1975, c.291 (C.40:55D-1 et seq.).

���� "Development
potential" means the maximum number of dwelling units or square feet of
nonresidential floor area that may be constructed on a specified lot or in a
specified zone under the master plan and land use regulations in effect on the
date of the adoption of the development transfer ordinance or on the date of
the adoption of the ordinance authorizing noncontiguous cluster, and in
accordance with recognized environmental constraints.

���� "Development
regulation" means a zoning ordinance, subdivision ordinance, site plan
ordinance, official map ordinance or other municipal regulation of the use and
development of land, or amendment thereto adopted and filed pursuant to
P.L.1975, c.291 (C.40:55D-1 et seq.).

���� "Development
restriction" means an agricultural restriction, a conservation
restriction, or a historic preservation restriction.

���� "Development
transfer" or "development potential transfer" means the
conveyance of development potential, or the permission for development, from
one or more lots to one or more other lots by deed, easement, or other means as
authorized by ordinance.

���� "Development transfer
bank" means a development transfer bank established pursuant to section 22
of P.L.2004, c.2 (C.40:55D-158) or the State TDR Bank.

���� "Drainage" means the
removal of surface water or groundwater from land by drains, grading or other
means and includes control of runoff during and after construction or
development to minimize erosion and sedimentation, to assure the adequacy of
existing and proposed culverts and bridges, to induce water recharge into the
ground where practical, to lessen nonpoint pollution, to maintain the integrity
of stream channels for their biological functions as well as for drainage, and
the means necessary for water supply preservation or prevention or alleviation
of flooding.

���� "Electric vehicle supply
equipment" or "electric vehicle service equipment" or
"EVSE" means the equipment, including the cables, cords, conductors,
connectors, couplers, enclosures, attachment plugs, power outlets, power electronics,
transformer, switchgear, switches and controls, network interfaces, and point
of sale equipment and associated apparatus designed and used for the purpose of
transferring energy from the electric supply system to a plug-in electric
vehicle.� "EVSE" may deliver either alternating current or,
consistent with fast charging equipment standards, direct current electricity.�
"EVSE" is synonymous with "electric vehicle charging
station."�

���� "Environmental
commission" means a municipal advisory body created pursuant to P.L.1968,
c.245 (C.40:56A-1 et seq.).

���� "Erosion" means the
detachment and movement of soil or rock fragments by water, wind, ice and
gravity.

���� "Final approval"
means the official action of the planning board taken on a preliminarily
approved major subdivision or site plan, after all conditions, engineering
plans and other requirements have been completed or fulfilled and the required improvements
have been installed or guarantees properly posted for their completion, or
approval conditioned upon the posting of such guarantees.

���� "Floor area ratio"
means the sum of the area of all floors of buildings or structures compared to
the total area of land that is the subject of an application for development,
including noncontiguous land, if authorized by municipal ordinance or by a
planned development.

���� "General development
plan" means a comprehensive plan for the development of a planned
development, as provided in section 4 of P.L.1987, c.129 (C.40:55D-45.2).

���� "Governing body"
means the chief legislative body of the municipality.� In municipalities having
a board of public works, "governing body" means such board.

���� "Historic district"
means one or more historic sites and intervening or surrounding property
significantly affecting or affected by the quality and character of the
historic site or sites.

���� "Historic preservation
restriction" means a "historic preservation restriction" as
defined in section 2 of P.L.1979, c.378 (C.13:8B-2).

���� "Historic site"
means any real property, man-made structure, natural object or configuration or
any portion or group of the foregoing of historical, archeological, cultural,
scenic or architectural significance.

���� "Inherently beneficial
use" means a use which is universally considered of value to the community
because it fundamentally serves the public good and promotes the general
welfare.� Such a use includes, but is not limited to, a hospital, school, child
care center, group home, or a wind, solar or photovoltaic energy facility or
structure.

���� "Instrument" means
the easement, credit, or other deed restriction used to record a development
transfer.

���� "Interested party"
means: (a) in a criminal or quasi-criminal proceeding, any citizen of the State
of New Jersey; and (b) in the case of a civil proceeding in any court or in an
administrative proceeding before a municipal agency, any person, whether
residing within or without the municipality, whose right to use, acquire, or
enjoy property is or may be affected by any action taken under P.L.1975, c.291
(C.40:55D-1 et seq.), or whose rights to use, acquire, or enjoy property under
P.L.1975, c.291 (C.40:55D-1 et seq.), or under any other law of this State or
of the United States have been denied, violated or infringed by an action or a
failure to act under P.L.1975, c.291 (C.40:55D-1 et seq.).

���� "Land" includes
improvements and fixtures on, above or below the surface.

���� "Local utility"
means any sewerage authority created pursuant to the "sewerage authorities
law," P.L.1946, c.138 (C.40:14A-1 et seq.); any utilities authority
created pursuant to the "municipal and county utilities authorities law,"
P.L.1957, c.183 (C.40:14B-1 et seq.); or any utility, authority, commission,
special district or other corporate entity not regulated by the Board of
Regulatory Commissioners under Title 48 of the Revised Statutes that provides
gas, electricity, heat, power, water or sewer service to a municipality or the
residents thereof.

���� "Lot" means a
designated parcel, tract or area of land established by a plat or otherwise, as
permitted by law and to be used, developed or built upon as a unit.

(cf: P.L.2021, c.171, s.5)

���� 2.��� Section 34 of P.L.1975,
c.291 (C.40:55D-46) is amended to read as follows:

����
34.
� a.� An ordinance
requiring site plan review and approval shall require that� the developer
submit to the administrative officer a site plan and
[
such
]

any
other information as
is reasonably necessary to make an informed decision as to whether the
requirements necessary for preliminary site plan approval have been met.� The
site plan and any engineering documents to be submitted shall be required in
tentative form for discussion purposes for preliminary approval.� If any
architectural plans are required to be submitted for site plan approval, the
preliminary plans and elevations shall be sufficient.

���� b.��� If the planning board
required any substantial amendment in the layout of improvements proposed by
the developer that have been the subject of a hearing, an amended application
for development shall be submitted and proceeded upon, as in the case of the original
application for development.� The planning board shall, if the proposed
development complies with the ordinance and
[
this
act
]

P.L.1975,
c.291 (C.40:55D-1 et seq.)
, grant preliminary site plan approval.

���� c.���� Upon the submission to
the administrative officer of a complete application for a site plan which
involves 10 acres of land or less, and 10 dwelling units or less, the planning
board shall grant or deny preliminary approval within 45 days of the date of
[
such
]

the

submission or within
[
such
]

a

further time as may be consented to by the developer.� Upon the submission of a
complete application for a site plan which involves more than 10 acres, or more
than 10 dwelling units, the planning board shall grant or deny preliminary
approval within 95 days of the date of
[
such
]

the

submission or within
[
such
]

a

further time as may be consented to by the developer. Otherwise, the planning
board shall be deemed to have granted preliminary approval of the site plan.

����
d.��� A planning board that
receives a complete application for a site plan for the development of a data
center shall submit the site plan and all other information received from the
developer to the State Planning Commission and the Board of Public Utilities,
for review pursuant to subsection c. of section 38 of P.L.1975, c.291
(C.40:55D-50), the cost of which shall be determined by municipality and
charged to the developer.

(cf: P.L.1984, c.20, s.8)

���� 3.��� Section 36 of P.L.1975,
c.291 (C.40:55D-48) is amended to read as follows:

����
36.
� a.� An ordinance
requiring subdivision approval by the planning board shall require that the
developer submit to the administrative officer a plat and
[
such
]

any
other
information as is reasonably necessary to make an informed decision as to
whether the requirements necessary for preliminary approval have been met;
provided that minor subdivisions pursuant to section 35 of
[
this act
]

P.L.1975,
c.291 (C.40:55D-47)
shall not be subject to this section.� The plat and any
other engineering documents to be submitted shall be required in tentative form
for discussion purposes for preliminary approval.

���� b.��� If the planning board
required any substantial amendment in the layout of improvements proposed by
the developer that have been the subject of a hearing, an amended application
shall be submitted and proceeded upon, as in the case of the original application
for development.� The planning board shall, if the proposed subdivision
complies with the ordinance and
[
this
act
]

P.L.1975,
c.291 (C.40:55D-1 et seq.)
, grant preliminary approval to the subdivision.

���� c.���� Upon the submission to
the administrative officer of a complete application for a subdivision of 10 or
fewer lots, the planning board shall grant or deny preliminary approval within
45 days of the date of
[
such
]

the

submission or within
[
such
]

a

further time as may be consented to by the developer.� Upon the submission of a
complete application for a subdivision of more than 10 lots, the planning board
shall grant or deny preliminary approval within 95 days of the date of
[
such
]

the

submission or within
[
such
]

a
further
time as may be consented to by the developer.� Otherwise, the planning board
shall be deemed to have granted preliminary approval to the subdivision.

����
d.��� A planning board that
receives a complete application for a major subdivision that includes
development of a data center shall submit the plat and all other information
received from the developer to the State Planning Commission and the Board of
Public Utilities, for review pursuant to subsection c. of section 38 of
P.L.1975, c.291 (C.40:55D-50), the cost of which shall be determined by
municipality and charged to the developer.

(cf: P.L.1984, c.20, s.9)

���� 4.��� Section 38 of P.L.1975,
c.291 (C.40:55D-50) is amended to read as follows:

���� 38.� Final approval of site
plans and major subdivisions.

���� a.���� The planning board
shall grant final approval if the detailed drawings, specifications and
estimates of the application for final approval conform to the standards
established by ordinance for final approval, the conditions of preliminary
approval and, in the case of a major subdivision, the standards prescribed by
N.J.S.46:26B-1 et seq.; provided that in the case of a planned development, the
planning board may permit minimal deviations from the conditions of preliminary
approval necessitated by change of conditions beyond the control of the
developer since the date of preliminary approval without the developer being
required to submit another application for development for preliminary
approval.

���� b.��� Final approval shall be
granted or denied within 45 days after submission of a complete application to
the administrative officer, or within
[
such
]

a

further time as may be consented to by the applicant.� Failure of the planning
board to act within the period prescribed shall constitute final approval and a
certificate of the administrative officer as to the failure of the planning
board to act shall be issued on request of the applicant, and it shall be
sufficient in lieu of the written endorsement or other evidence of approval,
herein required, and shall be so accepted by the county recording officer for
purposes of filing subdivision plats.

���� Whenever review or approval of
the application by the county planning board is required by section 5 of
P.L.1968, c. 285 (C. 40:27-6.3), in the case of a subdivision, or section 8 of
P.L.1968, c. 285 (C. 40:27-6.6), in the case of a site plan, the municipal
planning board shall condition any approval that it grants upon timely receipt
of a favorable report on the application by the county planning board or
approval by the county planning board by its failure to report thereon within
the required time period.

����
c.���� The planning board
shall not grant final approval of a site plan or major subdivision for
development of a data center unless the planning board has submitted the plan
to the State Planning Commission and the State Planning Commission has granted
final approval.� The State Planning Commission, in consultation with the Board
of Public Utilities, shall have 45 days from the date of submission by the
planning board to review and approve or deny the site plan or major subdivision
for the development of a data center.� The State Planning Commission and Board
of Public Utilities may consider the impacts and appropriateness of a proposed
site plan or major subdivision with respect to the most recently adopted State
Development and Redevelopment Plan, local land use and development regulations,
and any laws, rules, regulations, or programs enforced or administered by the
State Planning Commission or Board of Public Utilities, respectively. �If the
State Planning Commission does not issue an approval or denial within 45 days,
the State Planning Commission shall be deemed to have granted final approval of
the site plan or major subdivision.

(cf: P.L.2013, c.106, s.12)

����
5.��� (New
section)� The development of a data center, as defined in section 3.1 of
P.L.1975, c.291 (C.40:55D-4), shall not be eligible for any economic
development subsidy.

���� As used in this section:

���� "Economic development
subsidy" means the provision of an amount of funds to a recipient business
by or from a State public body with a value of greater than $25,000, including,
but not limited to, any bond, grant, loan, loan guarantee, matching fund, tax
credit, or other tax expenditure.� "Economic development subsidy"
shall not mean any contract under which a State public body purchases or
otherwise procures goods, services, or construction on an unsubsidized basis,
including any contract solely for the construction or renovation of a facility
owned by a State public body.

���� 6.��� (New section)� The State
Planning Commission, in consultation with the Board of Public Utilities, shall,
pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), adopt rules and regulations, to effectuate the purposes
of subsection c. of section 38 of P.L.1975, c.291 (C.40:55D-50).

���� 7.��� This act shall take
effect immediately and shall apply to applications for development of data
centers submitted on or after the effective date of this act.

STATEMENT

���� This bill amends the
"Municipal Land Use Law" to direct a planning board to submit
completed preliminary site plan or major subdivision applications for the
development of a data center, as defined in the bill, to the State Planning
Commission (SPC) and the Board of Public Utilities (BPU).� The bill also prohibits
final approval of a site plan or major subdivision for development of a data
center from being granted by the planning board unless the planning board has
submitted the plan to the SPC and the SPC gives final approval.� The SPC, in
consultation with the BPU, is to have 45 days from the date of submission by
the planning board to review and approve or deny the site plan or major
subdivision for the development of a data center, based on the impacts and
appropriateness of the proposed site plan or major subdivision. If the SPC does
not issue an approval or denial within 45 days, the SPC shall be deemed to have
granted final approval of the site plan or major subdivision.

���� The bill also provides that
data centers are ineligible for any economic development subsidies, as defined
in the bill.

���� The provisions of the bill are
to apply to applications for development of data centers submitted on or after
the date of enactment.