Story perspectives

New Jersey Ends $500 Million Data-Center Tax Credits

8/28/2026

Summary

Story summary

Governor Mikie Sherrill of New Jersey signed legislation ending a $500 million data-center tax-credit program.
New Jersey also required data-center operators to report energy and water usage to the state.
Governor Greg Abbott of Texas ordered the Utility Commission and ERCOT to audit data-center connections and pause builds in August.
Governor Kathy Hochul of New York signed a one-year moratorium on data-center development, the first state ban of its kind.

History

Historical Context

California’s early climate leadership—spurred by the 1970 Clean Air Act and decades of cutting smog alerts from >100 annually to almost none—set a template that Governor Arnold Schwarzenegger’s administration expanded. Inspired by that model, Governors Greg Abbott and Kathy Hochul are now tightening data-center tax credits, extending California-style oversight to Texas and New York.

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Story summary

Governor Mikie Sherrill of New Jersey signed legislation ending a $500 million data-center tax-credit program.
New Jersey also required data-center operators to report energy and water usage to the state.
Governor Greg Abbott of Texas ordered the Utility Commission and ERCOT to audit data-center connections and pause builds in August.
Governor Kathy Hochul of New York signed a one-year moratorium on data-center development, the first state ban of its kind.

1 / 2