The high cost of living is the number one issue facing Americans. In Montana, energy and water utility costs are up, housing is unaffordable, gas is skyrocketing, food prices keep increasing, healthcare costs are unmanageable, etc. Some say that data centers can provide high-paying jobs to alleviate this affordability crisis. This is a false solution.
Data centers negatively impact affordability and health in communities across the U.S., raising serious concerns for Montana, including the over-promising of jobs at a proposal in Butte, and recent layoffs from already spiking energy prices.
Now, another Montana project proposal has bread crumbs that indicate it may hire far fewer permanent staff than it proclaims.
Idaho-based Krambu’s permit application for a proposed AI data center in Bonner, Montana, details projected employment at that site. Its expected impacts on traffic, parking, and public areas are minimal: “The data center … will not require regular staffing, so no additional parking will be necessary,” “the only vehicle traffic will be periodic maintenance and technical visits…” and “because the proposed use does not have resident staffing, no pedestrian traffic will be generated.”
The company submitted these documents “under penalty of perjury and the laws of the State of Montana,” so no spin or sales pitch obscures Krambu’s minimal staffing needs. In March, the CEO told the community that the facility would support about three permanent data center jobs per two megawatts of demand. That is clearly not true. When a meeting attendee shouted, “Pensions? Benefits?” there was no response.
New construction usually means a decent amount of construction jobs. While there will be a handful of such jobs, comments at the March meeting indicated that an Idaho-based construction company will likely be used and bring out-of-state workers. The company’s co-owner – and childhood friend of Krambu owners – described bringing in an initial team from out-of-state and then partnering with locals. The application indicated that the engineering firm completing the application is also based in Idaho. Out-of-state workers increase pressure on housing costs. Short-term jobs for out-of-state construction teams and permanent cost-of-living increases is not a good deal for Montanans.
Krambu’s chief executive also suggested that an aquaponics project might create new jobs by utilizing recycled heat from the data center to grow food — a concept he described as “industrial symbiosis.” Using recaptured heat for a community food project is a great concept. However, Krambu’s application is silent on an aquaponics project, and surprisingly claims that no waste heat or thermal effects will be generated at the data center. Talk is cheap. Contracts speak volumes.
AI data centers are being built, in large part, to eliminate work forces. Tech billionaire Elon Musk openly pines for a scenario where AI and robotics will soon replace all jobs. The very tech companies building data centers are laying off their workforces so they can redirect salaries to invest in more and bigger AI data centers. “Dark warehouses” are fully-automated data facilities with no need for lights because no humans work inside of them. Perhaps these “dark warehouse AI factories,” are the modern day equivalent of the exploitative and unregulated meatpacking factories described in Upton Sinclair’s The Jungle that chewed up workers for private profit.
Montana deserves development that prioritizes Montana families and creates high-quality jobs. Data centers should enrich our neighborhoods – not exploit them for corporate profit.
Jim Morton was the long-time Executive Director of District XI Human Resource Council. Morton sits on the steering committee of Montanans for Affordable Energy.