OpenAI signals a new tack on data centers as the political backlash intensifies
The AI company pledged to cover power costs at campuses it owns and asked lawmakers to codify similar rules
San Francisco, November 5 - Following a series of Democratic wins in the recent US midterm elections, many have suggested that voters are rejecting plans from the tech industry to construct data centers nationwide. OpenAI, a prominent AI lab, has now initiated a new approach to alter these perceptions. The company unveiled policies, which were in development since August, aimed at fostering trust with local communities and demonstrating that data centers would be advantageous for them.
OpenAI announced that it would discontinue the use of non-disclosure agreements when engaging with public officials during the negotiation or discussion of potential site locations. Although sensitive information would remain confidential, residents would now have access to construction plans and an understanding of their possible impact on traffic, noise, and lighting.
Chris Lehane, OpenAI's chief global affairs officer, emphasized that data centers would serve as a continuous source of employment. He explained that the hardware within these centers would require updates every three to five years, thereby creating job opportunities. Lehane also noted that some OpenAI facilities, such as the one in southern Ohio, are anticipated to generate 2,500 long-term positions with an average annual salary of $80,000.
Data center opponents witnessed significant gains in the midterm elections, with Democrats winning governorships in Texas, Georgia, and Ohio. These candidates had pledged to suspend new data center permits and impose stricter construction regulations. Out of 41 data center-related ballot measures cast during this election period, all but one opposed the construction of data centers, according to Ballotpedia.
The performance of companies involved in the data center industry and power providers, which have reaped substantial benefits from the AI boom, declined on Wednesday. Investors speculated that a Democratic victory could lead to stricter permitting, increased costs, and a slower pace of construction.
OpenAI's president, Greg Brockman, acknowledged the need to improve communication with local communities. He emphasized that data centers could provide numerous benefits and stressed the importance of explaining this to residents. Brockman joined other tech executives in attempting to establish connections with the administration of US President Donald Trump over the past two years, aiming to shape federal AI policy.
OpenAI CEO Sam Altman had donated $1 million to Trump's inaugural committee and attended his second inauguration. In the previous year, Brockman contributed $25 million personally to a Trump super PAC.
Regarding skepticism from some Democrats, Lehane highlighted his background in the party. He served as a top lawyer and spokesperson during the Clinton administration and worked as the press secretary for Vice President Al Gore during his presidential campaign.
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- OpenAI lays out new policy framework for data centers businessinsider.com
- OpenAI kicks off charm offensive to change voters' view of data centers channelnewsasia.com
- OpenAI says it will protect local resources and report on the impact of its data centers engadget.com
- OpenAI pledges to change how it handles data center deals, including avoiding nondisclosure agreements and cutting power usage, after Democrats' midterm wins (Dina Bass/Bloomberg) bloomberg.com