Executive Summary
New Jersey enters mid-2026 under a new administration with a clear technology identity. Governor Mikie Sherrill (D), sworn in January 20, 2026 as the state's 57th governor, inherits the NJ AI Hub — a Princeton-anchored ecosystem with CoreWeave and Microsoft as founding partners that aims to make New Jersey the East Coast's leading AI center. The state runs on a single-year fiscal cycle; Sherrill signed her first budget on June 30, 2026 — a record $60.74B FY2027 Appropriations Act, up about 3.7% over FY2026, carrying a ~$6.08B surplus and halving the structural deficit to roughly $1.35B without raising income or sales taxes. Three shifts matter for SLG sellers: the AI Hub and surrounding 'AI corridor' along Route 1 are pulling in compute and talent; Sherrill has unveiled a first-in-the-nation framework to regulate AI data centers (making operators fund their own power and grid upgrades) amid ~20% electric-bill increases driven largely by data-center demand; and central IT leadership has settled under new CTO Kevin Dehmer (who succeeded the retired Chris Rein), with NJOIT (50+ departments) and the NJCCIC cyber fusion center as the key statewide buyers. For Dell, the AI-infrastructure angle is the headline, balanced against an energy-and-governance climate that rewards efficient, governed compute.
- AI-infrastructure demand tied to the NJ AI Hub, Princeton/Rutgers research computing, and the Route 1 'AI corridor' (PowerEdge, networking, GPU-dense systems, services).
- Governed, on-prem / private-cloud AI for state agencies operationalizing the NJ AI Assistant and AI Task Force recommendations — sensitive workloads that favor controlled compute over open public models.
- Cyber resilience build-out with the NJCCIC and the new Civilian Cyber Resilience Corps — secure infrastructure and managed services for state and local government.
- Endpoint, client, and lifecycle modernization across 50+ NJOIT-served departments as leadership and priorities reset under a new administration.
Dell Action Plan
- Lead with AI infrastructure: tie Dell ISG / AI Factory offerings to the NJ AI Hub, Princeton/Rutgers research computing, and the Route 1 AI corridor.
- Position energy-efficient, governed compute that aligns with New Jersey's data-center scrutiny — frame Dell as the partner for high-performance AI that minimizes power and grid burden.
- Engage NJOIT under new CTO Kevin Dehmer to shape statewide refresh and AI-platform direction early in the Sherrill administration.
- Map cyber offerings to the NJCCIC and Civilian Cyber Resilience Corps for state and local secure-infrastructure and managed-services demand.
- Validate Dell coverage on NJSTART statewide contracts and NASPO ValuePoint participating addenda so targeted agencies can buy without a fresh RFP.
Budget & Fiscal
New Jersey budgets on an annual (single-year) cycle running July 1 to June 30, so FY2027 is the year now in progress. Governor Sherrill signed the FY2027 Appropriations Act on June 30, 2026 at $60.74B — the largest in state history and about 3.7% above the $58.78B FY2026 act signed by then-Governor Murphy — with a ~$6.08B surplus and the structural deficit cut roughly in half to $1.35B. There is no single 'state IT budget' line; technology spend is distributed across agencies and is centrally coordinated through the Office of Information Technology (NJOIT), with cyber funded through Homeland Security / the NJCCIC. Governor Sherrill delivered her first budget address in early 2026 emphasizing affordability, energy, and accountability for Big Tech and data centers.
- Budget figures are annual (single-year) totals; New Jersey does not budget biennially.
- Technology and cyber dollars are distributed across NJOIT-served agencies and Homeland Security (NJCCIC) rather than a single consolidated IT appropriation — confirm the owning entity before forecasting.
- FY2027 is the first budget of a new administration focused on affordability and energy costs; expect data-center and grid policy to keep influencing tech-adjacent spending.
- FY2027 (enacted): Governor Sherrill signed the FY2027 Appropriations Act on June 30, 2026 at $60.74B — the largest budget in state history, up ~3.7% over FY2026 — carrying a ~$6.08B surplus and cutting the structural deficit roughly in half, from over $3B to about $1.35B, with no increase to income or sales taxes. The plan largely preserves her proposed blueprint (~$2B in cuts, record property-tax relief, sustainable Stay NJ); no single consolidated IT/cyber line is broken out in public summaries.
Initiatives & Policy
NJ AI Hub2
Operational / scalingAnnounced in January 2025 by then-Governor Murphy and Princeton President Eisgruber, with Microsoft and CoreWeave as founding partners and $72M+ committed across the state (NJEDA), Princeton, and industry. Located at 619 Alexander Road in West Windsor along the Route 1 corridor, the Hub advances three pillars: AI research, commercialization/acceleration, and AI education/workforce. In December 2025 it selected Plug and Play to operate a regional AI Accelerator. The strongest tailwind in the state for Dell AI-infrastructure and research-computing demand.
AI Data Center Regulatory Framework7
Proposed (May 2026)Governor Sherrill on May 27, 2026 unveiled what her administration calls the country's first comprehensive statewide framework for regulating AI data centers. The four-part plan would make operators fund their own energy supply and grid upgrades, publicly report energy/water use, negotiate community benefit agreements, and use union labor — shifting costs off ratepayers. Related bills (e.g., S680) tie clean-energy mandates and large-load tariffs to data centers. The climate rewards efficient, governed, lower-power compute and creates uncertainty for raw hyperscale buildout.
NJCCIC & Civilian Cyber Resilience Corps5
Active / expandingThe New Jersey Cybersecurity and Communications Integration Cell (NJCCIC), the state's cyber fusion center within Homeland Security, published a new 2026–2030 strategic plan and in December 2025 launched the Civilian Cyber Resilience Corps — a statewide volunteer initiative to help state, local, and critical-infrastructure entities prevent, withstand, and recover from attacks. Drives demand for secure infrastructure, endpoint protection, and managed services across state and local government.
Enterprise GenAI for State Government6
In productionUnder EO 346 (2023) New Jersey stood up an AI Task Force and directed NJOIT to govern state AI use. The Office of Innovation launched the NJ AI Assistant — a safe 'sandbox' GenAI platform for state employees — and one of the nation's first comprehensive GenAI training programs. As agencies move from pilot to scale, governed and auditable AI on sensitive data is an opening for private/on-prem compute rather than open public models.
Procurement & Competition
New Jersey centralizes IT direction in the Office of Information Technology (NJOIT), which oversees infrastructure for 50+ state departments and agencies, while purchasing is run by the Department of the Treasury's Division of Purchase & Property (DPP) through the NJSTART eProcurement marketplace. Most technology buys run through DPP statewide contracts and NASPO ValuePoint cooperative agreements (including Cloud Solutions via a Carahsoft participating addendum).
| Vehicle / gate | What it means for Dell |
|---|---|
| NJSTART Statewide Contracts | Primary platform. DPP-awarded statewide term contracts searchable and orderable by state, county, and municipal entities. Confirm Dell agreements and reseller paths are current. |
| NASPO ValuePoint (cooperative) | New Jersey participates in NASPO ValuePoint IT contracts (e.g., Cloud Solutions, IT VMSP) via participating addenda — a fast lane for cooperative IT purchasing. |
| NJEDA / partnership vehicles | For AI Hub and economic-development-linked compute, the NJ Economic Development Authority and Princeton partnerships can be non-traditional routes alongside standard procurement. |
| Key buying entity | Role |
|---|---|
| NJOIT (Office of Information Technology) | Central IT authority and infrastructure provider for 50+ departments; sets statewide tech and AI-governance direction. |
| Division of Purchase & Property (Treasury) | Statewide procurement authority; runs NJSTART and awards term contracts. |
| NJCCIC (Homeland Security) | Cyber fusion center and security buyer for state and local government. |
| Princeton & Rutgers | Large independent research-computing and AI-infrastructure buyers; Princeton anchors the NJ AI Hub. |
New Jersey is a contract-driven, cooperative-friendly market where incumbents hold NJSTART and NASPO agreements across compute, networking, and services. Differentiation comes from AI-infrastructure capability tied to the AI Hub and research universities, energy-efficient/governed compute that aligns with the state's data-center scrutiny, and cyber-ready offerings mapped to NJCCIC — more than on price alone.
Power Structure
| Decision-maker | Why they matter |
|---|---|
| Mikie Sherrill3 Governor (57th) · State of New Jersey | Sworn in Jan 20, 2026. Priorities: affordability, energy/permitting reform, and accountability for Big Tech and AI data centers. |
| Dale Caldwell3 Lieutenant Governor · State of New Jersey | Sworn in alongside Sherrill, Jan 2026. |
| Kevin Dehmer4 Chief Technology Officer · NJOIT | Appointed CTO by Gov. Sherrill on Feb 2, 2026, succeeding retired CTO Chris Rein (8 years); interim COO Vernon Spencer bridged the gap. Owns statewide IT direction, permitting/licensing modernization, and cybersecurity. |
| Dave Cole13 Chief Innovation Officer · NJ Innovation Authority (Office of Innovation) | Retained by Sherrill (announced Jan 5, 2026). The Office of Innovation was codified into state law in Jan 2026 as the NJ Innovation Authority — the first such office enshrined in statute. Leads NJ AI Assistant and AI Task Force work. |
| Michael Geraghty5 State CISO & Director, NJCCIC · NJ Office of Homeland Security & Preparedness | Continues as State Chief Information Security Officer and NJCCIC Director under the Sherrill administration (verified current June 2026; received the IST Cyber Policy Award in Feb 2026). Owns statewide cyber strategy. |
| NJ AI Task Force6 AI policy & governance body · NJ Innovation Authority / NJOIT | Chartered by EO 346; led by chief innovation officer, CTO, and NJEDA CEO. Shapes state AI adoption and guardrails. |
| NJCCIC5 State cyber fusion center · NJ Office of Homeland Security & Preparedness | Coordinates statewide cybersecurity; 2026–2030 strategic plan and new Cyber Resilience Corps. |
News & Signals
Sources
- Office of the Governor — Governor Murphy Signs Fiscal Year 2026 Budget into Law
- Microsoft — Governor Murphy and Princeton announce Microsoft and CoreWeave as founding partners in NJ AI Hub
- NPR — Democrat Mikie Sherrill wins New Jersey governor's race
- GovTech — New Jersey Names a Permanent Chief Technology Officer (Kevin Dehmer)
- NJCCIC — Strategic Plan 2026–2030 and Civilian Cyber Resilience Corps
- StateScoop — New Jersey launches generative AI assistant and training tool for state employees
- Central Jersey — Gov. Sherrill unveils data center regulations
- NJBIZ — First 100 days: Sherrill targets affordability, permitting reform, energy
- Gothamist — Gov. Sherrill lays out plan to ease AI data centers' burden on NJ towns, electric bills
- NASBO — Summaries of FY2027 Proposed Budgets (June 2026)
- NJ AI Hub — Governor Sherrill joins NJ AI Hub as it marks one year of operations (June 17, 2026)
- Office of the Governor — Governor Sherrill Announces Comprehensive Plan on Data Centers (May 27, 2026)
- Office of the Governor — Sherrill Updates Budget Report Card Ahead of Full Legislature Vote on FY2027 Budget ($60.74B, June 29, 2026)
- StateScoop — Under a new governor, New Jersey will keep its innovation office and its innovation chief (Dave Cole)
- NJEDA — Next New Jersey Program – AI (tax-credit program page; applications temporarily paused for review)
- Office of the Governor — Governor Sherrill Appoints Kevin Dehmer to Serve as New Jersey's Chief Technology Officer (Feb 2, 2026)
- New Jersey OHSP — Michael Geraghty, State CISO & Director, NJCCIC (leadership)
- Office of the Governor — Governor Sherrill Signs FY 2027 Appropriations Act (June 30, 2026)