Enshrine Labor Demands into Law

There are four pathways that state lawmakers can take to enshrine these demands into law.

Pass a State Law

Where it does not conflict with federal law, states can pass labor ordinances codifying these provisions into law. This is the strongest possible vehicle, since it would apply to all workers across the state.

Require Job-Quality Standards as a Condition on Permitting Approval

As a next-best step, states should condition permitting on data center proposals abiding by strong labor standards. While permitting is typically controlled by local jurisdictions, states can pass a law requiring certain conditions as a requirement for permitting. Crucially, these conditions must be legally binding and include a clawback provision that specifies failure to meet the agreed-upon standards will result in the revocation of permit and certificate of occupancy. See Establish Conditional Use Permitting for Data Centers for more details.

Require Job-Quality Standards as a Condition of Tax Breaks or Subsidies

If attaching labor conditions to the conditional permitting process is not possible, states can attach labor conditions to tax breaks. Note: This is less preferable than permitting because states should repeal tax breaks for data centers. These conditions must be legally binding and include a clawback provision that specifies that failure to meet the agreed-upon standards will require repayment. See Repeal or Limit Tax Incentives and Subsidies for more details.

Institute Legally Binding Community Benefits Agreements

Labor conditions can also be attached to community benefits agreements (CBAs). This is the least preferable vehicle because CBAs are limited in scope and do not apply to all data center development projects within a community. See Considerations for Community Benefits Agreements for more details.