In our spotlight on Business Report tonight, the impact of AI on our energy bills.

Turns out every time you type a question into chat, GPT or ask artificial intelligence to say write an email, the process uses a ton of energy.

A recent MIT Sloan report notes creating just one image using generative AI is the equivalent of fully charging a smartphone.

As Governor, Murphy pushes to make New Jersey an AI hub, more questions are emerging about our grid's ability to take on the weight of those new technologies.

Raven Santana reports on a hearing in Trenton today where experts laid out what it could mean for the state's energy needs and goals.

Data centers already use 2% of the world's electricity, but their demand is rising so fast that it could double by 2026.

And this level of growth would make air related energy demand equal to the total electricity consumption of the entire country of, let's say, Japan.

That's the challenge that is in front of us.

It's no secret that AI is rapidly reshaping our economy, workforce and daily lives, but it's also driving an unprecedented surge in energy consumption.

As AI capabilities expand, so too does its demand for electricity, which is why the Senate Legislative Oversight Committee held a meeting where members, including Chair Senator Andrew Zwicker, posed serious questions about our state's energy infrastructure and its ability to meet the demands of AI.

Can the power grid sustain this surge in AI driven energy use without overburdening the grid?

Our residents, businesses and our energy infrastructure itself?

Will air electricity demand drive up energy costs for New Jersey ratepayers, particularly for low income households?

Zwicker and fellow committee members heard testimony from electric companies leaders, including Jason Stanek, the executive director of PJM, the largest power grid in North America that serves over 9 million residents in New Jersey.

Stanek stressed during his testimony how critical it is to begin construction now to avoid a blackout.

Over the next five years.

Demand for electricity to serve data centers alone will triple from currently 4% today.

Of PJM, demand is data centers to 12% in five years from now.

But we do remain open to additional solutions as long as they will help us keep the lights on.

Governor Murphy remains committed to making New Jersey an AI hub, but the lingering question remained Is the state and its residents prepared for the financial burden of building these large scale data centers?

Well, I think you have a responsibility of letting us know there's a problem coming, because if you have the power, we can't get it to the site.

What good is it?

So it's very lovely to say this is the future.

We're going to need more power.

But right now, the state in Jersey cannot deliver the power to the site.

And we have a major problem if you're going to if we're going to see 30% rate increases come July 1st, there's going to be thousands of people with pitchforks and tar looking to tar and feather whoever they think is responsible for this.

So we've got some problems.

If your bill is $100 a month.

Right.

And we all wish we had $100 a month and that was it, now would be 130.

If your bill is 200 a month, it'll be 260.

Right.

So it's just going to go higher and higher and higher.

And people are struggling to make ends meet right now.

And given a warming earth, given the fact that our summers get so hot, given the fact that air conditioning has become just a basic necessity, ensuring that we are putting public policies in place to control the price of electricity is critically important.

And that's what we're highlighting today.

Zwicker says the committee has already began working on legislation.

He says the committee will now take all the information and testimony from the hearing and introduce that legislation in the weeks ahead.

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