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As AI data centers spread across the US, unions weigh potential job gains against rising local costs

The path forward may depend on demanding stronger protections.

Construction workers on a site with scaffolding during sunset, silhouetted against the sky.

Photo Credit: iStock

The fight over AI data centers' enormous demands on electricity and water is no longer confined to a narrow infrastructure debate as public frustration grows over the industry's costs, oversight, and the effects on local communities despite promises of blue-collar jobs.

Here's what to know

New AI data center projects are facing public resistance, even as companies continue to sell them as sources of investment and construction employment. According to Jacobin, that resistance is now influencing both state policy decisions and the wider political debate.

An August Heatmap Pro poll found opposition to data centers at 75%, and it reported strong opposition from more than six in 10 Americans. A University of Pennsylvania Annenberg Public Policy Center poll had found local opposition rising from 49% in March to 61% in July.

Rapid buildout is also putting labor in a difficult position. New facilities can create jobs for construction and skilled-trades workers during the building phase, but those gains are increasingly being weighed against worries about oversight, costs, long-term strain on communities, and the possibility that the public could end up paying for the consequences.

More background

AI is closely tied to the energy grid because large data centers require enormous amounts of electricity to train models, process requests, and keep servers cool.

That can drive demand for new power generation and transmission infrastructure while also requiring heavy water use at some facilities. For households, that can mean added pressure on local resources or even higher utility bills.

The issue is especially complicated because AI does offer real potential benefits. It can help optimize power flows, improve building efficiency, forecast renewable energy output, and support cleaner grid operations. But those advantages exist alongside major concerns, including high energy consumption, water use, security risks, misuse, and unintended economic consequences.

Data centers are increasingly becoming a local land-use, energy, labor, and cost-of-living issue that could shape where power goes, how much it costs, and who benefits from the buildout.

What's being done?

States are starting to respond with a mix of pauses, audits, and stricter rules. Lawmakers across the country are taking a stance. 

As Jacobin detailed, Pennsylvania Governor Josh Shapiro signed an executive order billed as the country's toughest rules for the industry, Texas Governor Greg Abbott halted additional grid hookups for an audit despite previously recruiting data centers, and in July New York Governor Kathy Hochul imposed what Jacobin described as the country's first statewide moratorium.

Those moves suggest officials are trying to slow the rush long enough to determine whether data center growth is putting too much pressure on electric grids and water systems or exposing residents to unnecessary costs.

For workers and unions, the path forward may depend on demanding stronger protections rather than accepting an all-or-nothing choice between jobs and oversight.

If data centers continue to expand, communities may push for clearer standards on energy use, water consumption, grid upgrades, and who is responsible for paying for them.

Utility commission hearings, zoning meetings, and state-level energy rulemaking can all influence whether new facilities move forward and under what conditions. Those proceedings often determine whether developers must help pay for infrastructure instead of shifting those costs to ratepayers.

People are being asked to weigh possible innovation and employment gains against resource use, affordability, and accountability — and many are no longer willing to let massive projects move ahead without scrutiny.

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