The rapid growth of artificial intelligence presents a significant opportunity for job creation in skilled trades, rather than serving as a justification for universal basic income, according to Lori Chavez-DeRemer, former Secretary of Labor.
Chavez-DeRemer argues that the narrative suggesting AI will eliminate jobs, leading to a need for government handouts, misunderstands the current economic landscape. Instead, she emphasizes that the development of AI infrastructure is driving a substantial buildout, comparable to historical national projects like the interstate highway system.
Data centers, the physical foundation of the AI economy, are being constructed at an unprecedented pace. The White House announced "Stargate," a $500 billion private investment initiative to develop AI infrastructure across the nation, which is just one of many such projects. A single large data center can employ approximately 1,500 skilled tradespeople during peak construction, with many earning six-figure incomes, often with overtime pay. These roles typically do not require a college degree.
The workforce involved in constructing and maintaining these facilities is predominantly composed of unionized tradespeople, including electricians, pipefitters, ironworkers, HVAC technicians, and operating engineers. Electricians alone can account for 45 to 70 percent of a data center's construction budget. Nvidia CEO Jensen Huang has described this as the "largest infrastructure buildout in human history."
The nation faces a choice: either implement policies that lead to widespread unemployment and reliance on government support, or invest in training and infrastructure development. Chavez-DeRemer advocates for expanding registered apprenticeships, streamlining permitting processes for power projects, and prioritizing the training of electricians and pipefitters. This approach, she contends, will ensure that demand and skill drive wages, benefiting both workers and the economy.
She contrasts this with the push for universal basic income, which she characterizes as "surrender" rather than compassion. Chavez-DeRemer asserts that work provides more than just a paycheck; it offers dignity and a sense of contribution.
The current focus on data center development represents a critical juncture, with a ready workforce and public support for an economy that rewards those who build its future. This moment offers a chance to create an American economy where builders and innovators have ownership, echoing the spirit of past generations who undertook massive infrastructure projects without seeking mere participation trophies.