The economic tremors from artificial intelligence are becoming impossible to ignore. Since 2023, U.S. entry-level job postings have dropped by more than a third. Major technology firms have conducted repeated layoffs. In private conversations, investors and law firm partners tell Senator Mark Warner (D-VA) they are slashing investments and entry-level hires, citing the capabilities of new AI tools.

Warner describes a 'palpable' public fear of job loss, a sentiment now merging with growing local opposition to the data centers that power the AI boom. Communities are protesting the facilities over noise, pollution, and strain on power grids. On Wednesday, Senators Bernie Sanders and Alexandria Ocasio-Cortez introduced legislation calling for a national data center moratorium.

Warner disagrees with a halt, warning it would cede ground to China. 'There’s no stuffing the genie back into the bottle,' he said at the Axios AI Summit. Instead, he is drafting a different proposal: tax data centers and direct the revenue to help workers navigate the AI-driven economic shift.

'One of the questions I was asking was, Who should pay?' Warner told TechCrunch. He considered taxing chip manufacturers or large AI model companies, but concluded 'the easiest place... is probably going to be from the data centers.' The funds could support job training programs or community benefits, creating a direct link between the infrastructure and those affected by its output.

The concept has a model in Henrico County, Virginia, which used data center tax revenue for affordable housing. Warner argues such tangible benefits are essential to maintain public support, noting a recent poll where AI was viewed negatively by 46% of voters. 'Otherwise,' he said, 'the pitchforks are coming out.' With Virginia already considering a repeal of data center tax breaks, his idea may be arriving at the right moment.

Source: TechCrunch