Exclusive: AI giants, unions join forces for data center fight

AI companies, private equity firms and unions are looking beyond 2026 in the data center debate, banding together to form a new multimillion-dollar coalition to make the case for responsible growth in seven key states. Why it matters: The new group, the American Infrastructure Alliance, wants to partner with state and local officials to create standards and guardrails for data centers in 2027. In return, the coalition hopes to head off moratoriums on new construction. The group is planning initial campaigns in Texas, Georgia, Ohio, Iowa, Pennsylvania, Indiana and South Carolina. The alliance is backed by Blackstone, OpenAI, QTS and SoftBank Group, along with key unions, including the International Brotherhood of Electrical Workers (IBEW). What they're saying: "Responsible growth requires clear expectations for everyone involved," said Tag Greason, co-CEO of QTS, the Blackstone-owned data center operator. "Blanket bans on necessary infrastructure projects would set back our economy and threaten good middle-class jobs," said Kenneth Cooper, the IBEW's international president. "The IBEW is committed to responsible development that benefits workers, communities and our nation." "We are proud to join this coalition to chart a clear path forward, so that UA members can continue to protect the health of the nation," said Mark McManus, general president of the United Association of Union Plumbers and Pipefitters (UA). Between the lines: This isn't an outside group built to flood the airwaves in key congressional races or battleground states ahead of the 2026 midterms. Instead, it represents an initial investment in a broader battle over AI and data centers that will likely bleed into the 2027 state legislative battles and the 2028 presidential campaign. "Texas shouldn't choose between protecting what matters and building what's next," the narrator says in one of its ads, which makes an appeal to Gov. Greg Abbott (R). "We can do both." Zoom out: Data centers have become a defining issue in the 2026 midterm elections, with Democrats hammering Republicans in key states for supporting them. Leading progressives, including Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.), have unveiled legislation to pause all new data center construction nationwide until AI safeguards are in place. At the state level, Abbott — a cheerleader for data centers before the political backlash to them began — halted approvals for new data centers in early August. A few weeks later, he said data center companies had "dug their own grave" and deserved the backlash they were facing. Pennsylvania Gov. Josh Shapiro (D) had a similar reversal: Last year he celebrated a $20 billion Amazon investment, but last month signed an executive order to tighten the rules for data center development. Zoom in: Unions are heavily represented in the group, with the goal of activating their members to help convince state and local officials that data centers can be built responsibly. Besides the IBEW, the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART), the International Association of Heat and Frost Insulators and Allied Workers (HFIAW), the International Association of Iron Workers, and the United Association of Union Plumbers and Pipefitters (UA) are aboard. The group's own polling found that data centers are deeply unpopular in Ohio, with 67% of those surveyed holding an unfavorable opinion, compared with 18% who have a favorable impression. But those numbers flip when data centers pledge to keep electricity costs low, create jobs and generate tax revenue, according to the group's polling. The bottom line: The group wants to work with local officials — not against them. "American workers and communities should have a seat at the table as this critical infrastructure is built," said Michael Coleman, general president of SMART.

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