Livingston-based CoreWeave will keep its $250 million in state tax credits, but no other AI data center company will get a similar deal in New Jersey.

Gov. Mikie Sherrill signed the End Data Center Tax Credits Act on Aug. 27, eliminating the remaining $250 million in unused incentives from a program created just two years ago, according to Real Estate NJ. NJ.com first reported the legislation passed both chambers of the state Legislature with overwhelming bipartisan support.

CoreWeave was the only company to receive an award before the state paused the program in June. The cloud computing company was approved for up to $250 million — $50 million annually for five years — for a $1.8 billion AI data center under construction at the former Merck campus in Kenilworth. In exchange, CoreWeave must maintain its New Jersey operations for at least a decade.

That award stays.

The new law blocks the remaining $250 million from going to other companies, returning those funds to the Aspire and Emerge economic development programs they originally came from, according to Real Estate NJ.

What it means locally

CoreWeave's nearly 400,000-square-foot Kenilworth facility is expected to use up to 250 megawatts of electricity and create 143 permanent jobs. It is scheduled to open in early 2027.

The project has drawn sharp opposition in Kenilworth and neighboring towns. Residents have packed public meetings and held weekly rallies against the facility. CoreWeave officials have said the company is committed to being "a responsible neighbor," NJ.com reported.

Across the state, more than 50 municipalities have adopted bans or moratoriums on data center development.

How the program began

Former Gov. Phil Murphy created the Next New Jersey Program–AI in July 2024 to attract artificial intelligence investment. The $500 million program drew from unspent funds in other state economic development programs. Companies had to invest at least $100 million, create at least 100 full-time jobs and partner with a New Jersey university, startup or accelerator to qualify.

CoreWeave claimed the maximum award. No other company received credits before the state hit pause.

Assemblyman Andrew Macurdy, a Democrat representing Union County and a primary sponsor of the legislation, said in a statement that New Jersey residents should not be subsidizing large AI data centers.

Broader crackdown

The signing was part of Sherrill's four-part data center regulatory plan, announced in May. She has also signed laws creating a separate electric rate class for large data centers and requiring operators to report electricity and water use to the Board of Public Utilities twice a year, NJBIZ reported.

Sherrill has stopped short of a statewide moratorium on AI data center projects, which some environmental groups have demanded. New Jersey is already home to more than 70 data centers, many built over the past two decades to support financial markets and telecommunications.

CoreWeave's Kenilworth facility is on track for its early 2027 opening.