News Update

IBEW Local 102

IBEW 102 Press Release

DATA CENTERS EXPLAINED: Myths, Facts, and Answers


The narrative surrounding data centers has gained national attention - but what is fact and what is fiction? We've included 2 sources for you to review, know the facts and decide for yourself. The first comes from CoreWeave - Data Centers Explained: Myths, Facts, and Answers

Next is an Op-Ed that was submitted by Local 102 president Bernie Corrigan and Michele Siekerka, president and CEO of NJBIA. This editorial can also be found on NJ.com or read below.

by Michele Siekerka and Bernie Corrigan

 Over the years, NJBIA and the state’s organized labor leadership have been on opposite sides of some of the hardest fights in Trenton. But when we find ourselves standing shoulder to shoulder on a major policy matter, it’s worth discussing why.

The answer is simple: Many communities across New Jersey are debating decisions about data centers based on fear, and the facts don’t support that fear.

That isn’t a case for approving every project.

Gov. Mikie Sherrill was right to call for transparency and serious community review as part of her recently announced data center plan. Not all proposals are equal, and communities are asking the right questions. They deserve clear answers.

Unfortunately, much of what’s circulating in affected communities isn’t always fact.

AI is already a facet of our everyday lives, and it’s transforming sectors fundamental to breakthroughs in healthcare, scientific research and national security.

As we work to reclaim our status as the Innovation State, while also seeking to galvanize our economy, New Jersey cannot let misperception outrun opportunity. We should be positioning ourselves as a leader in AI innovation at exactly the moment that position is worth something.

On electricity costs

 

Here’s a clear-eyed view of the main concerns.

The most common fear is that data centers will drive up residential utility bills. It has happened before: A large facility arrives, pushes an existing substation to capacity, and ratepayers end up footing the infrastructure bill to build a new one.

That concern is legitimate. The details are what matter.

Electricity rates in New Jersey are set by utilities and regulated by the Board of Public Utilities, not by data center operators. Here’s the sharper question we should be asking: Is the data center operator funding the new infrastructure it will require?

If the utility builds it and recovers the cost through rates, that bill lands on residential customers. If the data center operator funds it directly, there’s no infrastructure cost to pass along.

The responsible ones do the latter, as we see with the CoreWeave project in Kenilworth, which is funding its own substation construction and procuring clean energy at a premium for the facility. The new capacity it builds will serve the broader grid, not just its own facility. That’s the standard communities should be demanding.

On water, emissions and noise

 

During construction, the cooling system requires a one-time water fill. After that, it runs on a closed-loop design that circulates continuously, moving heat through the system year-round without drawing on the local water supply.

For context, that initial fill is roughly what an 18-hole golf course uses in a few days. Once operational, day-to-day water use amounts to what you’d expect from any office building of similar size for break rooms and bathrooms.

On emissions and noise: What if we told you Google reduced its data center emissions by 12% in 2024? The industry is moving toward carbon-free energy procurement, and software improvements have driven efficiency gains.

As for noise levels, New Jersey law sets hard limits: 50 decibels at night, 65 during the day. For context, 50 decibels is a quiet room, and 65 is about the same as background music in a coffee shop. Facilities must stay below that after 10 p.m. These are enforceable standards, not suggestions.

On community impact and jobs

 

Before the first server goes online, a data center does something tangible for its host community: It goes on the property tax rolls. That revenue flows directly to local school districts, which in New Jersey are perpetually underfunded and dependent on Trenton to make up the difference. A large facility changes that math in a meaningful way.

For local employment, critics point to low permanent headcounts at individual facilities. That framing ignores contractors, on-site tenant workers, suppliers and the broader economic activity a large permanent facility anchors.

Nationally, labor income from the data center industry grew 144% between 2017 and 2023. In New Jersey, a recent PwC report counted 35,180 direct jobs in the sector in 2024, contributing $14.8 billion in labor income. Each direct job supports an estimated 4.5 positions elsewhere in the economy.

Large, permanent infrastructure attracts businesses that depend on reliable digital capacity. Suppliers, contractors and service providers tend to put down roots near the anchor facility. That’s not theoretical. It’s how regional economies have always built around major infrastructure investments.

The national and global economies are at an inflection point — a bold new era of innovation. Data centers are investments for this era. The states that understand this are already ahead. New Jersey should be one of them.

NJBIA will soon release a report on the full realities of data centers. In the meantime, we encourage people to seek out the facts.

The last thing we want to do in this rapidly advancing space of AI is put a firewall around New Jersey being a leader in this emerging economy.

Michele Siekerka is president and CEO of the New Jersey Business & Industry Association.

Bernie Corrigan is president of IBEW Local 102.

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