OpenAI, Blackstone and unions form a data centre alliance, Axios reports

Credit: DC Studio / Magnific

OpenAI, Blackstone, QTS and SoftBank Group have teamed up with US unions to head off state data centre moratoriums, Axios reported on Monday. The American Infrastructure Alliance wants to agree data centre standards with state and local officials in 2027, Hans Nichols wrote.

The group will start with campaigns in Texas, Georgia, Ohio, Iowa, Pennsylvania, Indiana and South Carolina. Axios called it a multimillion-dollar coalition. A spokesperson told the Daily Caller News Foundation it is a “high eight-figure campaign”.

“Blanket bans on necessary infrastructure projects would set back our economy and threaten good middle-class jobs,” Kenneth Cooper, who leads the electricians’ union IBEW, said, according to Axios.

Unions at the front

Four more unions have signed up, according to Axios. They are the sheet metal workers’ union SMART, the Heat and Frost Insulators, the Iron Workers and the plumbers’ United Association. The unions plan to rally members to convince officials that companies can build data centres responsibly. Blackstone owns QTS, the data centre operator.

The alliance’s website says large energy users should pay for their own infrastructure. It also calls for agreements with communities on noise, lighting, construction and distance from homes.

“Responsible growth requires clear expectations for everyone involved,” QTS co-CEO Tag Greason said, according to Axios.

The backlash it wants to head off

The group’s own Ohio poll of 800 voters found 18% viewed data centres favourably and 67% unfavourably. Nearly three in four opposed one near their community. Support rose to 60% against 34% when companies pledged to cover infrastructure costs, create jobs and pay local taxes.

Several states have already moved. New York froze new data centres for a year in July. Texas Governor Greg Abbott halted new approvals in August. Pennsylvania’s Josh Shapiro signed an order to tighten the rules the same month.

Abbott’s press secretary, Andrew Mahaleris, set out his conditions to the Daily Caller News Foundation. Data centres must pay for their own electric infrastructure, add power and reuse their own water, he said. They must also cut electricity costs for Texans.

“The point of a moratorium is to allow for rigorous study to determine if this industry can ever be regulated safely,” Mitch Jones of Food & Water Watch told the Daily Caller.

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