Industry News and Advocacy

Community and Labor Agreements Strengthen Data Center Projects

Data centers are popping up all over the country, but not every community is benefiting from these massive projects. That’s why Community Benefits Agreements (CBAs) and Project Labor Agreements (PLAs) are so important.

What are Community Benefits Agreements (CBAs) and Project Labor Agreements (PLAs)? 

CBAs are legally binding agreements designed to make sure a project gives back to the community. That could mean local hiring requirements, funding for schools and infrastructure, environmental protections, or workforce training programs. CBAs ensure communities see real benefits, not just the impacts of a big project in their backyard.

Experts from Brookings Institution say that CBAs can help address major local concerns about energy, water, and infrastructure impacts from data centers, while including binding commitments to job creation, workforce training, and environmental protections. (brooking.edu)

PLAs ensure that benefits actually turn into good union jobs. PLAs guarantee fair wages, family-sustaining benefits, and access to a skilled, local workforce. PLAs also help projects stay on schedule and maintain high safety standards.

Studies from the Illinois Economic Policy Institute show that PLAs not only promote competition and keep construction costs under control, but also have positive effects on project efficiency, safety, job quality, and workforce development. (illinoisepi.org)

Data centers are complex builds that require highly trained hands. Union carpenters have the experience and training to do the job right, and strong agreements make sure our local members get the work.

Research shows that typical data centers create around 1,700 construction jobs during build-out but only about 150 permanent positions, underscoring why agreements are critical to maximizing local job opportunities. (ncrc.org)

When CBAs and PLAs are in place, everyone wins because communities get investment and protection, workers get good jobs, and projects run smoothly.