Unions Emerge as Key Allies for Data Center Boom Amid Community Opposition

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Unions Emerge as Key Allies for Data Center Boom Amid Community Opposition
Photo: Fortune
money· A press review of 4 outlets
  1. Data centers’ voracious energy needs are setting off a power plant construction boom and delivering a one-two punch of new life to unions whose members also build and maintain boilers, ductwork, pipelines and other power infrastructure.

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    Fortune

    Data centers’ voracious energy needs are setting off a power plant construction boom and delivering a one-two punch of new life to unions whose members also build and maintain boilers, ductwork, pipelines and other power infrastructure.

  2. They’ve also become an ally of tech giants and tech-friendly government officials, echoing the talking point that the United States is in a critical national security race with China for AI superiority.

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    Washington Times Business

    They’ve also become an ally of tech giants and tech-friendly government officials, echoing the talking point that the United States is in a critical national security race with China for AI superiority.

  3. Unions are a visible force in helping counter fierce opposition in communities and hostile legislation in Congress and legislatures, often aligning with traditional Republican pro-business constituencies and forcing Democrats to choose between them and progressives who want to take a harder line.

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    Washington Times Business

    Unions are a visible force in helping counter fierce opposition in communities and hostile legislation in Congress and legislatures, often aligning with traditional Republican pro-business constituencies and forcing Democrats to choose between them and progressives who want to take a harder line.

  4. Unions have aggressively answered complaints about data centers in ways that executives at tech giants and the development firms rarely do, unafraid to bluntly confront concerns about energy and water shortages, rising electric and water bills, or noise and quality-of-life objections.

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    Washington Times Business

    Unions have aggressively answered complaints about data centers in ways that executives at tech giants and the development firms rarely do, unafraid to bluntly confront concerns about energy and water shortages, rising electric and water bills, or noise and quality-of-life objections.

  5. “When people say, you know, ‘data centers are the root of all evil,’ we’re just saying, ‘look, they do create a hell of a lot of construction jobs, which we live and work in your communities,’” said Rob Bair, president of the Pennsylvania Building and Construction Trades Council.

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    Washington Times Business

    “When people say, you know, ‘data centers are the root of all evil,’ we’re just saying, ‘look, they do create a hell of a lot of construction jobs, which we live and work in your communities,’” said Rob Bair, president of the Pennsylvania Building and Construction Trades Council.

  6. Instead of “being just a blunt ‘no,’” Bair said, communities should figure out what they need and ask the tech companies for it — such as improvements to the project’s plans or millions of dollars for local schools. “If you don’t ask, you’re never gonna get,” he said.

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    Washington Times Business

    Instead of “being just a blunt ‘no,’” Bair said, communities should figure out what they need and ask the tech companies for it - such as improvements to the project’s plans or millions of dollars for local schools. “If you don’t ask, you’re never gonna get,” he said.

  7. It’s difficult to pin down exactly how many data center projects involve union labor. An Associated General Contractors of America survey late last year suggested that the labor composition of data center construction likely mirrors the makeup of commercial construction, which is roughly one-third union, an AGC spokesperson said.

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    Washington Times Business

    It’s difficult to pin down exactly how many data center projects involve union labor. An Associated General Contractors of America survey late last year suggested that the labor composition of data center construction likely mirrors the makeup of commercial construction, which is roughly one-third union, an AGC spokesperson said.

  8. The organization’s president, Sean McGarvey, compared it to the build trades’ expansion in the 1950s. He attributes today’s growth to data centers, power plants and legislation under former President Joe Biden that subsidized the construction of semiconductor and electric vehicle battery factories, energy efficiency projects and grid transmission improvements.

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    Washington Times Business

    The organization’s president, Sean McGarvey, compared it to the build trades’ expansion in the 1950s. He attributes today’s growth to data centers, power plants and legislation under former President Joe Biden that subsidized the construction of semiconductor and electric vehicle battery factories, energy efficiency projects and grid transmission improvements.

  9. For their part, tech giants say they need to train hundreds of thousands more workers in skilled trades. They are spending tens of millions of dollars on training programs, including partnerships with unions that they hire to build their multibillion-dollar projects.

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    Washington Times Business

    For their part, tech giants say they need to train hundreds of thousands more workers in skilled trades. They are spending tens of millions of dollars on training programs, including partnerships with unions that they hire to build their multibillion-dollar projects.

  10. Google said the majority of labor used to build its data centers is unionized, and pointed to a $10 million grant to a union-backed electricians training program that it said would help expand the electrician workforce pipeline by 70%.

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    Washington Times Business

    Google said the majority of labor used to build its data centers is unionized, and pointed to a $10 million grant to a union-backed electricians training program that it said would help expand the electrician workforce pipeline by 70%.

  11. ‘The data centers would still be getting built’ Mark McManus, the general president of the United Association of Union Plumbers and Pipefitters, whose members work on pipelines, data centers and power plants, acknowledged criticism that organized labor is getting in bed with the richest, most powerful companies in the world.

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    Washington Times Business

    But he rejected it as unrealistic. “If we chose as a union to have a moratorium on building the data centers because we didn’t believe it was right for America, the data centers would still be getting built,” McManus said. “They’re not stopping because of organized labor.”

  12. His union has a strong relationship with tech companies, is hitting all-time highs in membership and, based on an internal survey, has members working on over 90% of the data center projects in the United States.

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    Washington Times Business

    His union has a strong relationship with tech companies, is hitting all-time highs in membership and, based on an internal survey, has members working on over 90% of the data center projects in the United States.

  13. Showing up in towns and statehouses National unions have negotiated labor agreements on major projects, including an Oracle and OpenAI Stargate campus in Michigan and the “Project Blue” data center campus in Arizona, with more in the works.

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    Fortune

    Showing up in towns and statehouses National unions have negotiated labor agreements on major projects, including an Oracle and OpenAI Stargate campus in Michigan and the “Project Blue” data center campus in Arizona, with more in the works.

  14. When Gov. Josh Shapiro stood with Amazon executives to announce that the tech giant would spend $20 billion on two data center projects in eastern Pennsylvania, Bair stood with them.

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    Washington Times Business

    When Gov. Josh Shapiro stood with Amazon executives to announce that the tech giant would spend $20 billion on two data center projects in eastern Pennsylvania, Bair stood with them.

  15. The groups' letter comes as more and more communities are successfully opposing the proliferation of data centers across the nation. In Maine, state lawmakers recently passed legislation that would have enacted the nation’s first statewide moratorium on AI data centers had Democratic Gov. Janet Mills not vetoed the move.

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    Jacobin

    The most immediate, short-term policy demand driving this local organizing is a moratorium on new data centers. There are different versions of this policy — Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez have introduced a national moratorium, statewide moratoria have been proposed in at least twelve states (and one passed in Maine, though the legislation was vetoed by Governor Janet Mills), and dozens of cities, towns, and counties have already enacted such laws.

    Washington Times Business

    In statehouses, unions have worked against Maine’s since-vetoed proposal for a statewide data center moratorium; standards proposed in Illinois, including requiring data centers to supply their own energy; and an end to Virginia’s sales tax exemption that helped make it the world’s biggest data center destination.

    Fortune

    In statehouses, unions have worked against Maine’s since-vetoed proposal for a statewide data center moratorium; standards proposed in Illinois, including requiring data centers to supply their own energy; and an end to Virginia’s sales tax exemption that helped make it the world’s biggest data center destination.

  16. Pennsylvania state Sen. Katie Muth said it has been difficult to collect support from fellow Democrats for her legislation to regulate data centers when it is competing with union-backed legislation that she views as weaker.

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    Washington Times Business

    Pennsylvania state Sen. Katie Muth said it has been difficult to collect support from fellow Democrats for her legislation to regulate data centers when it is competing with union-backed legislation that she views as weaker.

  17. “The unions don’t want to promote anything that would impede data center development,” Muth said.

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    Washington Times Business

    “The unions don’t want to promote anything that would impede data center development,” Muth said.

  18. “I just want to commend you guys, thanks for being the adults in the room,” Chuck Curry, the president of Ironworkers Local 395, told City Council members in Hobart, Indiana, at a January meeting on an Amazon data center. “Knowing the tax structure, knowing business, that most of the people here don’t know.”

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    Washington Times Business

    “I just want to commend you guys, thanks for being the adults in the room,” Chuck Curry, the president of Ironworkers Local 395, told City Council members in Hobart, Indiana, at a January meeting on an Amazon data center. “Knowing the tax structure, knowing business, that most of the people here don’t know.”

  19. "Congress must not let Big Tech block oversight and hide data centers’ real harms from the public, including their immense energy and water use, dangerous pollution, and rising local costs," said one campaigner.

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    Jacobin

    These dangerous practices are as diverse as the constituencies mobilizing to oppose them. Many data center opponents are motivated by the impact of these projects on energy costs — electricity prices in some data center-dense areas have surged over 250 percent in recent years, and in 2024 customers of PJM paid $4.3 billion more in electricity costs to cover data centers’ new transmission infrastructure. Others rightly fear the environmental and climate harms of this build-out — data centers’ energy demand is actively extending the life of dirty coal plants and driving a massive expansion of new gas-fired power plants. Some harbor deeper concerns over the dangers this technology poses to our society and the way that AI currently serves powerful capitalist interests.

From the margins

2 details only one outlet reported

Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.

  1. 01 Common Dreams

    Nearly 120 civil society groups on Wednesday urged US lawmakers to reject Republican-led efforts to fast-track approval of artificial intelligence and conventional data centers, including by slipping provisions for these facilities into permitting reform legislation or "must-pass" bills.

  2. 02 Jacobin

    The grassroots resistance to artificial intelligence data centers that is springing up in communities across the country outlines the kind of working-class coalition many of us on the Left have always dreamed of — a diverse, nonpartisan, top-bottom movement against Big Tech billionaires that has the potential to reshape American politics in incredibly positive ways.

Assembled from 19 corroborated claims drawn from 4 independent outlets. Every passage above is taken verbatim — Dorothy doesn't paraphrase or summarize.

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  • commondreams
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