Unions become key allies for tech giants in data center development battles

Building trades unions have become strong allies for tech companies in promoting data center development across the United States. These unions, employing workers on numerous large-scale data center projects, are actively recruiting new apprentices to meet explosive demand. They help tech giants and pro-tech government officials counter community opposition and legislative efforts to restrict data center growth, often by emphasizing job creation and economic benefits. Rob Bair, president of the Pennsylvania Building and Construction Trades Council, noted that unions directly address concerns about energy and water shortages, rising utility bills, and noise. He encourages communities to negotiate for improvements or financial contributions from tech companies rather than simply rejecting projects. The construction boom has led to significant growth in union membership and training programs nationwide, with data centers accounting for a large percentage of work hours in regions like Columbus-Central Ohio and metropolitan Washington, D.C. Union leaders like Sean McGarvey of North America's Building Trades Unions and Mark McManus of the United Association of Union Plumbers and Pipefitters credit data center construction for driving this expansion. Tech companies, including Google and OpenAI, are investing millions in union training partnerships. While acknowledging criticisms of partnering with wealthy corporations, McManus asserted that unions' involvement ensures better conditions and that data centers would be built regardless. Unions have actively engaged in political battles, opposing a vetoed statewide data center moratorium in Maine, proposed energy standards in Illinois, and efforts to end Virginia's sales tax exemption for data centers. They have also appeared at local council meetings in places like St. Louis, Joliet, Illinois, and Hobart, Indiana, to advocate for projects, sometimes being the sole proponents amidst community opposition. For example, Pennsylvania Governor Josh Shapiro was joined by Rob Bair when announcing Amazon's $20 billion data center investment in eastern Pennsylvania.