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.

Rep. Andy Kim (D-N.J.)

Lt. Gov. Tahesha Way

Patricia Campos-Medina

U.S. District Judge Esther Salas

Nina Mitchell Wells

Rep. Bonnie Watson Coleman (D-N.J.)

A Perth Amboy police officer was injured during a shootout Wednesday while executing a search warrant with assistance from Rahway Police, according to Rahway Mayor Raymond Giacobbe and the New Jersey Attorney General’s Office.

During the operation, suspects attempted to flee, resulting in one suspect firing a gun and hitting the unidentified officer in the leg. The injury is non-life-threatening, and the officer was taken to Robert Wood Johnson University Hospital in New Brunswick for medical treatment.

No other officers reported injuries.

“One suspect sustained a gunshot wound to the leg. All suspects are in custody,” Giacobbe said. “As this situation is still under investigation, we will refrain from making any further comments at this time. My thoughts and prayers are with the injured officer. I extend my heartfelt wishes for a swift recovery and offer support to his family during this challenging time.”

The New Jersey State Policemen’s Benevolent Association expressed relief over the officer’s condition in a tweet: “We are counting our blessings this morning that our Perth Amboy Detective is going to recover. He was shot three times. His fellow officers took quick actions to prevent tragedy. Thank you to the doctors and nurses at RWJUH for their excellent care.”

Craig J. Coughlin, Speaker of the New Jersey General Assembly, also praised the first responders in a tweet, saying, “We owe such a debt to those who put it on the line every day to keep us safe.”

Attorney General Matthew Platkin said all of New Jersey is praying for the officer’s recovery.

“Our officers deserve our gratitude for the enormous risks they take on a daily basis to keep our communities safe,” Platkin stated. “As the state’s chief law enforcement officer, I am resolute in my commitment to work with our law enforcement and community partners to end gun violence in our state, and to do everything in our power to prevent this kind of violence against law enforcement in the future. We must continue to work together to prevent and disrupt gun violence of every kind in New Jersey.