New Jersey’s proposed net-zero energy policy for data centers has been gaining traction among the state’s politicians and data center operators. This New Jersey net-zero energy policy could bring some perspective to the data center industry.

New Jersey Net-Zero Energy Policy

New Jersey is committed to reducing net greenhouse gas emissions to zero by 2050. The Governor has promised the state will reach net zero goals ten years sooner than originally planned. New Jersey’s net-zero goal reflects the urgency of the climate crisis, and it sets an example for other states. To achieve these ambitious targets, New Jersey will need to become a leader in energy efficiency and renewable energy.

To ensure that there are no negative environmental impacts, the New Jersey net-zero energy policy requires that owners of new data centers purchase renewable energy credits, which produce clean energy, at an equivalent amount to offset the amount of electricity consumed by the data center.

average electricity price trends in new jersey


The “net zero” approach means having on-site renewable energy generation powering the data center and purchasing enough renewable energy credits (RECs) to make the data center carbon neutral.

This policy mandates that data centers must meet specific energy efficiency requirements or face penalties which could include charges for electricity usage. The reasoning behind this legislation is simple enough: if companies can’t meet the criteria set by the BPU, they will either need to invest more money into their facilities or pay more for power than is required to run their facilities.

The state is also encouraging private companies to follow suit, with incentives like rebates on building permits and tax breaks for installing solar panels and other forms of renewable energy generation. As part of the order, New Jersey has created a working group with companies like Amazon and Microsoft to ensure that best practices are being used throughout the state.

The state will expect all new data centers to be net-zero from now on.

Net zero data centers will be required to meet specific requirements for energy use, environmental impact, and community engagement, so they do not increase carbon emissions. The executive order plans to assign each data center a specific energy intensity target, measured against existing industry benchmarks. Those that achieve targets will be able to apply for special certifications.

Like every nation, Indonesia needs more green data centers, and so does New Jersey too. Data Center is the most important technological solution to store information and energy usage snowballs.

To help reduce environmental impact and provide transparency in their operations, net zero data centers must also develop a plan for achieving their goals. These plans must include recycling equipment and using renewable energy sources.

By requiring new and existing data centers to meet these standards, New Jersey will be better positioned to compete in the expanding global market for cloud computing services and help ensure that its economy remains strong.

The best way to make global warming worse is to do nothing.

New Jersey is also known for its high cost of energ which can be as much as three times the national average. Experts say it’s due to an old and inefficient power grid that relies on fossil fuels. New Jersey will need a more robust energy infrastructure and a long-term plan to transition away from fossil fuels to meet the growing power demand.

New Jersey has been taking steps towards improving the situation by adding additional transmission lines and revamping its energy policies, but these efforts will take years to implement fully.

Current research estimates that more than 500,000 servers within the United States and U.S. The Data centers are consuming about 70 billion kilowatt hours of electricity per year, accounting for 2% of the total electricity consumption in the nation.

The new policy allows companies that provide data center services to receive credit for excess energy generated by renewable energy sources used to power their facilities. In addition, companies that install solar panels for their data centers will be eligible for an exemption from the gross annual rental fee.

Most people don’t realize just how much a data center can affect the environment, but the truth is that the carbon footprint of one data center can equal the carbon footprint of thousands of homes, which is why most people think data centers are responsible for as much as 1% of all greenhouse gas emissions (that’s worse than airplanes).

Read also: Green Data Center Environmental and Financial Advantages


When we talk about carbon emissions, it’s easy to think that the solutions are all in the distant future. But one of the best things we can do right now is switch to renewable energy. This is why New Jersey has a new law that requires data centers bigger than 20 megawatts (MW) to buy their energy from renewables by 2021.

The biggest problem? Data centers need much energy. Some of them use as much power annually as small towns. This means they need much land to house their solar panels or wind turbines, which makes it expensive and challenging to create an entirely net-zero facility.

Though that may not seem like much at first, it’s crucial in the long run; with global warming becoming an increasingly scary reality, we need every easy step to improve things.

Data centers are being recognized as a big part of this problem, and this latest move from New Jersey shows that policymakers are starting to wake up and realize that if we’re going to make any progress.

Now is the time to act. They recognize that what’s happening right now isn’t good enough—it’s time for real change.

So what can be done?. We can do several things to help limit this issue: first and foremost, it’s up to us to start using less energy, so there’s less waste being produced.

And that’s why many businesses are working hard to cut their energy consumption, reduce the amount of waste they produce, and find ways to cut emissions from their supply chains. Some of these businesses are taking these steps far beyond what’s required by law because they see it’s better for the planet, their employees, and their bottom line.

You cannot copy content of this page

Share This