Data center community costs are "short-term pain for long-term gain," construction labor leader says
A labor leader argues that despite public opposition, data center construction offers long-term benefits like grid reliability, and that the industry is open to regulation. He highlights ongoing legislative efforts in Illinois to regulate data center development and a specific instance where a data center project was denied in Naperville.
Marc Poulos, a long-time labor leader in Illinois and executive director for the Indiana Illinois Iowa Foundation for Fair Contracting, supports data center development, despite CBS News polling showing half of Americans oppose new data centers in their area. Poulos attributes this opposition to a lack of public education and a failure by federal and state governments to appropriately regulate data center construction, particularly concerning labor, environmental standards, water usage, and energy capacity.
Poulos emphasized that the data center industry has been open to significant regulations, including taking responsibility for new energy capacity to prevent price spikes for consumers and banning non-disclosure agreements. He cited a recent Federal Energy Regulatory Commission (FERC) filing by PJM, a 13-state auction region that includes Illinois, which mandates that new data centers must bring equivalent new capacity to the market for the energy they consume. He characterizes this as a "short-term pain for a long-term gain" that will ultimately benefit consumers and the power grid.
While acknowledging public concerns about energy and water utility costs, Poulos maintained that the industry is unique in its commitment to a resilient, reliable, and safe U.S. power grid. He also noted that appropriate siting and regulation are crucial. He shared that a data center was denied in his hometown of Naperville, Illinois, and that the state of Illinois is currently considering legislation to regulate power usage, water usage, and siting, with expected action in November.