Data Centers
Data Center Labor Standards Gain Traction
July 17, 2026 | Kim Miller
Unions like the International Brotherhood of Electrical Workers are opposing data center moratoriums, arguing that these bans eliminate high-quality union jobs and economic opportunities in local communities. New York Governor Hochul issued the first statewide data center moratorium this week, implementing a one-year ban on new construction while labor groups push for standards instead of outright bans. California is considering legislation that would require data centers to enter community benefit agreements with labor unions and workforce organizations, while also mandating zero-carbon energy storage and water-efficient cooling systems. Michigan lawmakers introduced bills requiring data centers to meet labor provisions including registered apprenticeship programs, prevailing wages, and project labor agreements before receiving approval for special electricity rates. Several states are tying tax incentives to labor standards, with Minnesota and Washington considering legislation that conditions data center tax breaks on paying prevailing wages to construction workers.
