In today’s increasingly digital world, online data is central to industries like e-commerce, cloud computing and Artificial Intelligence (AI). Even more broadly, your everyday Google search, scroll through your social media feed or trip to the grocery store requires data and computing.
As of January 2025, there is surging demand for data and a growth in AI capabilities that is ushering in a rapid expansion of the data center industry and opportunities for power providers like PSEG to support the needs of customers and state policy makers by providing reliable, safe service.
The relationship between utilities and these customers with large loads is multi-faceted, focused on reliability, sustainability and innovation.
Assessing the power needs of large energy users
While the data center industry is booming, powering large customers has long been part of PSE&G’s work. We provide service to large customers including hospitals, universities and the approximately 70 small-to-large sized data centers already operating in our service territory today.
Whenever a large new power user requests service from PSE&G, we work directly with the customer to determine their specific needs, evaluate how we will meet their energy load requirements and find the best solution. A comprehensive review follows to determine how their needs will impact neighboring users and overall grid reliability and assess which infrastructure upgrades are needed. When there are impacts to the regional transmission system, we work with PJM—the Regional Transmission Organization (RTO) responsible for operating and planning the regional electric grid in 13 states including New Jersey—to address those impacts. PJM plans for necessary upgrades and new transmission lines to ensure reliable power delivery by analyzing future load forecasts, existing generation and potential new power sources. PJM is also responsible for procuring additional generation if needed.
Each site is unique, and customer needs vary. Every request requires an initial conversation and an ongoing dialogue with the customer. This is important for us as we work to find the best solution as our customer’s trusted energy partner.”
-Nicole Swan-Bennett, PSE&G senior director – Customer Care
Our approach combines planning, resource optimization and a focus on the reliability and integrity of our system, so that we meet the needs of both our current customers, as well as new ones, and confirm we’re meeting industry standards on reliability and energy levels.
PSEG’s nuclear plants
PSEG is the parent company of PSE&G and PSEG Nuclear. Our nuclear facilities provide 85% of New Jersey’s carbon-free energy generation and approximately 40% of New Jersey’s energy.
Our nuclear plants are a factor in both our reliability and capacity for large customers. With large energy users like data centers located in the state, our nuclear plants are part of an overall energy system that helps deliver the power needed to support them.
Powering data centers, powering economic growth
The data center industry is also seen by the state of New Jersey as an important economic driver that brings a future-focused industry to our state. New Jersey offers a unique opportunity compared to other states for data centers due to our proximity to large cities (New York and Philadelphia) as well as New Jersey’s reliable fiber, water, electric and gas services that are required to help businesses grow at a competitive cost.
As a company that has been operating in New Jersey for over 120 years, we support efforts to prepare the New Jersey economy for the future and, by extension, support the communities we serve. Whether it’s powering a new data center in a bustling city or supporting the operations of a facility in a more remote part of our service territory, we’re dedicated to meeting the evolving needs of our customers—wherever they are.
Our work to provide reliable service to large customers like data centers supports New Jersey and sets our state on the path to a brighter future.
