Vice President David A. Frye sent the letter below to Texas Governor Greg Abbott regarding his recent efforts to examine the impacts of rapid data center growth on the state’s electric system, consumers, and communities.

June 23, 2026
Dear Governor Abbott:

On behalf of the Laborers’ International Union of North America (LIUNA) and the thousands of LIUNA members who live and work in Texas, I write in response to your recent efforts to examine the impacts of rapid data center growth on the state’s electric system, consumers, and communities. We share the view that Texas should pursue policies that support economic development while ensuring that the costs and benefits of data center expansion are distributed fairly and that working families are protected.

As demand for data centers continues to accelerate, Texas finds itself at the forefront of one of the most significant infrastructure buildouts of the modern economy. The question is not whether data centers will be built, but whether they will be built responsibly and in a way that benefits all Texans.

We appreciate your recognition that data center developers should bear the costs associated with the infrastructure necessary to support their operations rather than shifting those costs onto residential consumers. LIUNA has consistently advocated for a similar framework nationally. We believe data center development should be accompanied by meaningful safeguards that protect communities, preserve natural resources, and ensure that the companies driving this unprecedented growth contribute fairly to the infrastructure and public services they rely upon.

As Texas continues to develop policies governing data center expansion, we respectfully urge that another critical stakeholder be included in this conversation: the workers who build these projects. The construction of data centers is creating thousands of jobs across Texas and providing significant opportunities for skilled construction workers, apprentices, and local residents seeking pathways into the middle class. These projects offer the potential to support family-sustaining careers, expand workforce training opportunities, and strengthen local economies. However, those outcomes are not automatic.

To ensure that the economic benefits of data center development are broadly shared, we encourage you and Texas policymakers to incorporate strong labor standards that lift up workers into any future legislative or regulatory framework governing these facilities. Specifically, we believe consideration should be given to:

  • Wage standards that ensure workers on these vital projects are paid family-supporting wages that allow the workers to maintain middle-class livelihoods.
  • Registered apprenticeship utilization requirements that emphasize safety, productivity, and growth, to create career pathways for the next generation of skilled workers while helping address workforce shortages;
  • Project Labor Agreements that provide labor stability, workforce training opportunities, and project certainty for owners and contractors alike;
  • Community Benefits Agreements that create meaningful engagement with local stakeholders while ensuring communities share in the economic benefits of development; and
  • Workforce reporting and accountability measures that provide transparency regarding the quality and quantity of jobs being created through these investments.

As Texas continues to develop policies governing data center expansion, we respectfully urge that another critical stakeholder be included in this conversation: the workers who build these projects.

Just as your proposal seeks to ensure that data centers contribute their fair share toward electric infrastructure, water conservation, and community protections, we believe it is equally important that these projects contribute to the development of a highly skilled workforce and the creation of well-paying jobs.]

The largest technology companies in the world are investing billions of dollars in Texas. They can and should meet high standards for community stewardship, resource management, and workforce development. By pairing strong community protections with strong labor standards, Texas can establish a model for responsible data center development that protects consumers, benefits communities, and creates lasting opportunities for working people.

Thank you for your time and consideration. We welcome an opportunity to work with you and the legislature to ensure that Texas continues to lead not only in innovation and investment, but also in creating good jobs and strong communities.

Sincerely,

David Frye
Vice President and Regional Manager
Laborers’ International Union of North America (LIUNA)