Blackstone works to address AI data center opposition, CEO says

Investing.com -- Blackstone is taking steps to manage the social and environmental effects of artificial intelligence development, CEO Stephen Schwarzman said Thursday, as resistance to data center construction grows across the United States.

Blackstone and other private capital firms are investing tens of billions of dollars into businesses and infrastructure designed to expand computing capacity and operate power-intensive AI models.

Schwarzman said Blackstone is working with its portfolio companies, including data center businesses, to address workforce, environmental and community concerns. The firm's approach includes creating union jobs, providing workforce training, implementing water-free cooling systems, expanding power generation and making local economic investments.

"Major change of this type also creates anxiety due to the uncertainty of how the technology will evolve," Schwarzman said on a conference call. He noted that AI's impact could mirror the industrial revolution, which eventually raised living standards.

QTS, a data center operator that Blackstone acquired for $10 billion in 2021, announced earlier this month it terminated a Virginia project after years of planning. The project faced strong local opposition and legal challenges, despite receiving approval from county authorities.

The Trump administration views AI development as a competition with China but is working to protect households from rising energy costs tied to the technology.

Schwarzman, a longtime Trump donor, said he has been meeting with industry leaders and policymakers to address these issues while maintaining America's AI leadership position.

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