The midterms didn’t stop the AI buildout. They simply repriced it—and OpenAI is the first to pay up - Fortune
By Google News AI ·
Two days after what appears to be voters rejecting data centers in town after town, OpenAI went shopping for something it can’t build: permission.
On Thursday, the company published a National Community Compact, in which the company pledged to pay for the electricity and grid infrastructure of the data center campuses it owns and operates. It also pledged to post financial guarantees before major spending begins, so other utility customers aren’t stuck with the bill if a project is delayed or canceled. The company told Fortune this has been months in the making and is something they’ve been pledging in their data center campuses already—the compact is simply the first time OpenAI put in writing a number of pledges it has already undertaken.
Mining and energy companies have a name for what OpenAI is after: a social license. (If you’re interested, you can read my grad school capstone about social license in Peru, which has since been enacted into law). These are a type of Community Partnership Agreements (CPAs) that entails getting a community’s ongoing consent to operate: No zoning board grants it, and no tax abatement buys it. Instead, companies earn it by showing the people next door that a project leaves them better off—or at least no worse off. Lose it, and permits stall, lawsuits pile up, and local officials find reasons to say no.
So following the Democratic wave on Tuesday, the AI industry found out how little of that license it had left. And distinctly, the midterm turnout wasn’t a cry from voters to stop the buildout, but simply to put a new price tag on it, and OpenAI is the first major AI company to agree to pay it since the votes were counted.
Data centers were on the ballot in roughly 40 localities across the country. By Wednesday morning, about 28…
Originally published by Google News AI
