As Democratic candidates who campaigned on regulating data center construction won in the U.S. midterm elections, OpenAI has taken steps to reassure local residents. The company announced it will cover all costs associated with expanding the power grid necessary for its data centers.
The New York Times reported that on November 5, OpenAI unveiled its 'National Community Compact.' According to the report, OpenAI pledged to bear the costs of electricity used by its facilities as well as the expenses for improving the power grid needed to supply that electricity. This response addresses residents' concerns that the influx of power demand from data centers would drive up local electricity rates.
This announcement came shortly after the Democrats achieved significant victories in the midterm elections. Notably, candidates in Texas, Georgia, and Ohio who promised to temporarily halt new data center permits and strengthen regulations were among the winners. Additionally, ballot measures limiting data center construction received broad support from voters across the country, adding pressure on the industry.
The Times analyzed that OpenAI finds itself in a difficult position, having previously underestimated local opposition to data centers. CEO Sam Altman had donated $1 million to Donald Trump's inauguration committee, while OpenAI President Greg Brockman contributed $25 million to a pro-Trump super PAC last year. However, Brockman has since withdrawn plans for additional donations this year.
The compact includes provisions to protect the community in case projects are canceled. OpenAI has agreed to provide financial guarantees to ensure that local communities will not bear the costs of power grid improvements if data center projects are scrapped.
OpenAI also announced measures to enhance transparency. The company will disclose water and power usage by facility and will discontinue the practice of requiring local officials to sign non-disclosure agreements (NDAs). Previously, OpenAI had made local officials sign NDAs to prevent them from sharing business information, leading to suspicions that the company was trying to evade local scrutiny. OpenAI stated it will enter into separate agreements with each community where data centers are built and will publish annual reports.
Furthermore, OpenAI argued that the same rules should apply across the industry. In a policy blueprint released alongside the compact, the company suggested that businesses, including AI firms that consume large amounts of power, should be required to bear the costs associated with expanding the power grid. It also urged the government to disclose tax benefits given to big tech companies and to reclaim those benefits if companies fail to meet their commitments.
* This article has been translated by AI.
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