AI Companies and Major Unions Join Together for New Data Center Push
Artificial intelligence companies are teaming up with unions and private equity firms to push for more data centers in seven states.
The American Infrastructure Alliance wants to work with state and local officials to implement standards and safeguards for future data centers in 2027, according to an Axios exclusive.
Texas, Pennsylvania, Georgia, Iowa, Ohio, Indiana, and South Carolina are among their target states.
The coalition is reportedly backed by Blackstone, OpenAI, QTS, and SoftBank Group, along with multiple unions, including the International Brotherhood of Electrical Workers.
Tag Greason, co-CEO of QTS, the Blackstone-owned data center operator, said that “responsible growth requires clear expectations for everyone involved.”
Kenneth Cooper, IBEW’s international president, stated that “blanket bans on necessary infrastructure projects would set back our economy and threaten good middle-class jobs.”
Cooper added, “The IBEW is committed to responsible development that benefits workers, communities and our nation.”
“We are proud to join this coalition to chart a clear path forward, so that UA members can continue to protect the health of the nation,” Mark McManus, general president of the United Association of Union Plumbers and Pipefitters, said.
The group is running advertisements in Texas pushing for Republican Gov. Greg Abbott to support the expansion of data centers.
Last Monday, Abbott directed the Texas Commission on Environmental Quality to halt “all permits sought by data centers until the Electric Reliability Council of Texas” completes an audit.
“Simply put, Texans must come first,” Abbott said in a news release. “Data centers must pay their own way, protect our grid and water, and complete the ERCOT and TWDB audits. Until they do, TCEQ will issue no permits sought by data center projects.”
The release added that “data center projects must cover all electrical infrastructure costs, result in lower residential electrical bills, and complete the ERCOT audit.”
“Data centers must not use water needed by local communities, must report electricity and water usage, and must abide by setback requirements that will protect the communities in which they operate.”
Abbott is also working with the state legislature next session to eliminate any incentives for data centers built in Texas.
Congressional Republicans and Democrats have also seized upon the issue as a talking point, advocating for stricter regulations regarding data centers.
The House passed “The Ratepayer Protection Act,” which would force data centers to cover any extra utility costs that they create, earlier this month by a margin of 417-3.
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