Allied

The "American Infrastructure Alliance" has formed to push for data center growth in Georgia, Indiana, Iowa, Ohio, Pennsylvania, South Carolina and Texas. Supposedly, the goal is to work with state and local governments on "responsible development" and, in so doing, head of potential moratoriums on new sites. (As opposed to the America's Infrastructure Alliance, which concerns itself with transportation, and the AI Infrastructure Coalition, which is a different group.)

Personally, what I was looking for in the Axios story on the outfit was some indication that they would come out against data center projects looking to have the elected officials they read into their projects sign Non-Disclosure Agreements. After all, if the point is, as International Brotherhood of Electrical Workers international President Kenneth Cooper says, "development that benefits workers, communities and our nation," then the developers should be willing to lay all of their cards on the table, no?

Personally, I suspect that the group isn't going to be as effective as its members may want it to be. Because the issue isn't really benefits... it's costs. Data centers have a very high level of perceived costs for the communities in which they are situation. Water usage may be overstated, but in places where the electrical grid needs to be updated or expanded to manage the extra capacity, power costs go up, and data centers are are often large, ugly and noisy. And while the labor unions that have signed on to the group are touting the jobs that will be created are mostly going to be temporary... it may take a small army of electricians to build out a data center, but it won't need all of them to maintain it. And if the union workers who build data centers live elsewhere, the impact of their wages on the local economy will also be short-lived.

The various businesses and unions that are backing this new alliance are going to have to make the case that the benefits to the communities where data centers will be built will match or outweigh the costs to them. But part of what allows businesses to be successful is often the ability to externalize costs (like not having to pay for training data), and the expectation that communities will "take one for the team" has already been articulated by some parties.

If the idea that this is simply another scheme to transfer wealth from rural communities to corporate shareholders and union executives take hold, this project will be dead on arrival. Considering the substantial head start that idea already has, this "American Infrastructure Alliance" likely has its work cut out for it.

PS: I went looking for a website for the group, to see what they had to say in their own words, but didn't manage to turn one up. Maybe it's a bit early for that yet.