New Jersey data centers will be required to report their energy and water use twice a year under legislation signed Thursday by Gov. Mikie Sherrill.

The law requires data center owners and operators to submit reports to the state Board of Public Utilities detailing their water and energy consumption. The reports must include total energy use, energy used for cooling and information technology equipment, peak daily water use, water sources and information about on-site and backup power supplies.

Sherrill also announced new state guidance intended to help municipalities negotiate community benefits agreements with data center developers. The agreements can address the effects of proposed projects and secure investments in host communities.

The guidance includes considerations for local infrastructure, emergency response and other community needs. Potential agreements could include investments in public infrastructure, redevelopment, schools and workforce development programs. It also outlines state labor standards, including prevailing wage and project labor agreement requirements.

"Decisions about the future of our community should be made here and not in boardrooms and backrooms in Silicon Valley," said Sherrill. "We don't have to choose between innovation and accountability, and we won't. Today we're giving back to our communities and making sure data centers work for us, not the other way around."

The New Jersey Economic Development Authority has also established an online resource hub and technical assistance for municipalities considering data center projects. The state Board of Public Utilities and Department of Environmental Protection are providing technical assistance as well.

The measures are part of a broader state effort to address the growth of data centers and their demands on New Jersey's electric grid and other resources. Sherrill signed separate legislation in July creating a new ratepayer class for data centers and requiring them to bring new clean energy onto the grid and contribute toward infrastructure needed to support their energy use.