Building trades unions join forces with tech giants in AI data center push

Building trade unions have emerged as key allies of tech giants in America’s rapidly expanding artificial intelligence economy, taking on a dual role as both the workforce behind massive data center construction and vocal advocates for the industry’s interests.

Across the United States, union members are working on an unprecedented number of data center projects, helping construct the physical infrastructure that powers AI development. The partnership has led to skyrocketing work hours and membership growth for many unions, reminiscent of the building trades expansion during the 1950s.

“When people say, you know, ‘data centers are the root of all evil,’ we’re just saying, ‘look, they do create a hell of a lot of construction jobs, which we live and work in your communities,'” said Rob Bair, president of the Pennsylvania Building and Construction Trades Council.

This alliance represents a notable shift in traditional labor politics, with unions frequently aligning with tech corporations against community opposition and legislative restrictions. Union representatives have become visible participants at municipal meetings, sometimes serving as the only public supporters of controversial data center projects.

The construction boom has been transformative for many unions. In Columbus-Central Ohio, data centers consume approximately 40% of work hours for building trade council members, according to executive Dorsey Hager. For the International Brotherhood of Electrical Workers Local 26 in the Washington, D.C. area, that figure reaches 50%.

North America’s Building Trades Unions (NABTU) reported reaching record membership and apprenticeship enrollment in 2023. NABTU President Sean McGarvey attributes this growth to data center construction, power plant development, and Biden administration initiatives that subsidized semiconductor factories, EV battery plants, and grid improvements.

The relationship has proven mutually beneficial. Tech giants are investing significantly in training programs to address skilled labor shortages. Google noted that the majority of its data center construction workforce is unionized and pointed to its $10 million grant for an electrician training program aimed at expanding the workforce pipeline by 70%.

“Across the country, highly skilled union construction workers are laying the foundation for the AI economy,” said OpenAI CEO Sam Altman in a joint statement with NABTU earlier this year.

The Boilermakers Local 154 in southwestern Pennsylvania exemplifies this resurgence. After recruiting zero apprentices for four years amid power plant closures, the union is now assembling a class of over 200 members—with demand for more. Data centers’ enormous energy requirements are driving a power plant construction boom that benefits unions involved in energy infrastructure.

Mark McManus, general president of the United Association of Union Plumbers and Pipefitters, acknowledges criticism that organized labor is aligning with powerful corporations but considers such objections unrealistic.

“If we chose as a union to have a moratorium on building the data centers because we didn’t believe it was right for America, the data centers would still be getting built,” McManus said. “They’re not stopping because of organized labor.”

His union reports members working on over 90% of U.S. data center projects—a market share unmatched in many other industries. While the exact union participation rate in data center construction is difficult to establish, the Associated General Contractors of America estimates it likely mirrors commercial construction, which is approximately one-third union.

This alliance has political implications, particularly at the state and local levels. Union representatives have opposed legislation in Maine, Illinois, and Virginia that would restrict data center development through moratoriums, strict energy requirements, or elimination of tax breaks.

Pennsylvania State Senator Katie Muth noted the challenge of gathering Democratic support for data center regulations when competing with union-backed alternatives. “The unions don’t want to promote anything that would impede data center development,” Muth said.

The unions’ advocacy extends to high-profile announcements, such as when Bair stood alongside Pennsylvania Governor Josh Shapiro and Amazon executives to announce the tech giant’s $20 billion investment in data centers in the state.

Union representatives frequently advise communities to negotiate benefits from tech companies rather than rejecting projects outright. As Bair put it, “If you don’t ask, you’re never gonna get.”

The building trades unions, once primarily viewed as the voice of the American worker, now find themselves intertwined with some of the world’s wealthiest corporations—creating an alliance that is reshaping both the physical landscape of American technology and the political dynamics surrounding it.