New Jersey
New Jersey’s $500 Million Bid to Become an AI Epicenter
New Jersey itself is a home to many large pharmaceutical companies—and if these companies use AI to design new drugs, nearby data centers are vital, Sullivan says.
“If you’re three people at a desk trying to develop the next Google, the next Tesla—in the AI space or in any space—this computing power is scarce. And it’s very valuable. It’s essential,” Sullivan says. So, in addition to any permanent jobs created by these companies, the tax incentives could lead to further growth and innovation for smaller startups, he claims. “The potential for economic impact is off the charts.”
Still, skeptical policy experts say the AI carveout may just be a new bow on an older idea, coming as the AI boom creates a rapid increase in demand for data centers. “There’s just this history of [tax incentive] deals building up the necessary infrastructure for these tech firms and not paying off for the taxpayer,” says Pat Garofalo, director of state and local policy at the American Economic Liberties Project, a nonprofit organization that calls for government accountability. The loss in tax revenue “is often astronomical” when compared to each job created, Garofalo says.
A 2016 report by Tarczynska showed that governments often forego more than $1 million in taxes for each job created when subsidizing data centers that are built by large companies, and many data centers create between 100 and 200 permanent jobs. The local impact may be small, but The Data Center Coalition, an industry group, paints a different picture: Each job at a data center supports more than six jobs elsewhere, a 2023 study it commissioned found.
In other states, a backlash against data centers is growing. Northern Virginia, home to a high concentration of data centers that sit close to Washington, DC, has seen political shifts as people oppose the centers’ growing presence. In May, Georgia’s governor vetoed a bill that would have halted tax breaks for two years as the state studied the energy impact of the centers, which are rapidly expanding near Atlanta.
This hasn’t deterred Big Tech companies’ expansion: In May, Microsoft announced it would build a new AI data center in Wisconsin, making a $3.3 billion investment and partnering with a local technical college to train and certify more than 1,000 students over the next five years to work in the new data center or IT jobs in the region. Google said just a month earlier it would build a $2 billion AI data center in Indiana, which is expected to create 200 jobs. Google will get a 35-year sales tax exemption in return if it makes an $800 million capital investment.
In Europe, the same contradictory approach is playing out: Some cities, including Amsterdam and Frankfurt, where companies have already set up data centers, are pushing new restrictions. In Ireland, data centers now account for one-fifth of the energy used in the country—more than all of the nation’s homes combined—raising concerns over their impact on the climate. Others are seeking out the economic opportunity: The Labour Party in the UK promised to make it easier to build data centers before emerging victorious in the recent UK election.
Police fired tear gas and used horses to push back protesters outside the Delaney Hall immigration detention facility in Newark, after nights of demonstrations over conditions inside. New Jersey’s governor put state police in charge and set up protected protest zones.
Published On 30 May 2026
From Camden and Cherry Hill to Trenton and the Jersey Shore, what about life in New Jersey do you want WHYY News to cover? Let us know.
In New Jersey, Mercer County officials have enacted new policies limiting the ability of federal immigration agents to access and use county property to conduct immigration enforcement operations.
Mercer County Executive Dan Benson issued an executive order and the Board of County Commissioners passed a resolution Friday that bans U.S. Immigration and Customs Enforcement and Customs and Border Patrol from using any nonpublic area on county property to enforce immigration law, unless they have obtained a judicial warrant or judicial order.
“From Minneapolis to Delaney Hall, ICE has repeatedly shown a total disregard for the law and for the constitutional rights of citizens and non-citizens alike,” Benson said in a statement. “We respect the Federal Government’s authority to enforce immigration law, but we will not allow them to use County properties to harass our families.”
“With this resolution, we’re sending a clear message that everyone in our community can safely interact with County government, and access County services, without fear,” said Board of Commissioners Chair Terrance Stokes in a statement. “ICE’s actions threaten the fabric of our community, and we will take whatever steps we can, within the bounds of the law, to protect our residents.”
New Jersey and New York City commuters are facing extensive delays in and out of New York Penn Station Friday, with intensifying ripple effects, after an Amtrak work train car on one of the hub’s tracks caught fire.
The FDNY says it was called to the Midtown scene on 31st Street, between Seventh and Eighth avenues, around 1:30 a.m. Nearly 100 personnel responded. Five civilians were evaluated at the scene by EMS, officials say.
It’s not clear what sparked the fire involving Amtrak’s contractor maintenance vehicles in one of the Hudson River Tunnels. It was knocked down well before 6 a.m., but service on New Jersey Transit, Amtrak, Long Island Rail Road and more was expected to see heavy impacts well into the morning rush, with Hudson River trains operating at reduced capacity. Amtrak said it didn’t expect to lift its suspension until at least noon.
Travel Advisory: Due to unforeseen track and signal maintenance resulting from a now extinguished fire in the New York area, all services traveling south of New York (NYP) are temporarily suspended. This suspension is anticipated to be in place until noon at a minimum. Services…
— Amtrak Northeast (@AmtrakNECAlerts) May 29, 2026
New Jersey Transit and LIRR also announced delays and cancellations. Cross-honoring and diversion programs were in effect as the situation developed. Complete LIRR service at NY Penn had resumed by around 7 a.m., Friday said, though equipment issues were causing cancellations. Get the latest transit information here.
Video from outside Penn Station showed smoke billowing in the pre-dawn hours, as emergency personnel stood by with stretchers awaiting any potential victims.
Amtrak is investigating the cause of the fire.
“We sincerely apologize for the inconvenience this may cause,” the agency’s latest announcement said, pledging to provide updates as new information becomes available.
-
Alabama1 minute agoOklahoma State Baseball Live Scoring for NCAA Regional vs. Alabama State
-
Alaska8 minutes agoHere’s Why Alaska Air Shares Popped Higher This Week | The Motley Fool
-
Arizona11 minutes agoArizona Lottery Mega Millions, Pick 3 results for May 29, 2026
-
Arkansas16 minutes ago
No. 5 Arkansas Razorbacks’ Historic Season Comes to an End at WCWS
-
California23 minutes agoSteve Hilton on His Surprisingly Strong Bid for California Governor
-
Colorado26 minutes agoAttorney General Phil Weiser’s underdog campaign for Colorado governor
-
Connecticut31 minutes ago
Where to watch Los Angeles Sparks vs Connecticut Sun on May 30: TV channel, start time and streaming
-
Delaware38 minutes agoHow Delaware fans will get to Philadelphia World Cup matches
