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A large contribution by a prominent labor group has put Gov. Tina Kotek’s reelection campaign in an awkward position as she tries to walk a fine line on the politically volatile issue of data centers.
In late June, Friends of Tina Kotek received $400,000 from IBEW Local 48, the regional electrical workers union and one of the state’s most powerful lobbying groups. The Oregonian previously reported the contribution, among the largest Kotek has ever received from a union. It’s also the largest gift given by Local 48 to any candidate—by far—since Oregon’s campaign finance database, Orestar, went live in 2006.
At first blush, the source of the donation might not seem surprising. Democrats have long been regarded as the party of organized labor, and IBEW has supported Kotek in the past. The building trades also tend to support politicians who promise big new construction projects—and Kotek’s new “Prosperity Roadmap” does just that through expedited permitting, expanded industrial sites, and other approaches.
But IBEW, nationally and in Oregon, remains a strong supporter of data centers, which are known to provide thousands of jobs to Oregon’s building sector, especially electricians (around 45% to 70% of a data center’s construction budget goes to the electrical subcontractor, according to IBEW).
“The IBEW is calling on all members to mobilize now and urge their members of Congress to oppose any bills that impose bans on data center construction and to instead support strong labor standards for these projects,” reads a statement by the national IBEW government affairs office.
Local 48 political director Chris Carpenter and business manager Garth Bachman did not respond to repeated requests for comment.
Public backlash against data centers has grown in recent months. Citing concerns about rising energy prices, degraded water and land quality, and misspent tax dollars, residents throughout Oregon have organized against data centers and demanded that local leaders reconsider their relationships with the corporations that build them.
The timing of IBEW’s donation is notable. The day it made the contribution, June 25, was the day after Kotek’s Prosperity Council released its roadmap—a slate of proposals intended to kick-start the flagging state economy and create more jobs.
Kotek, who has struggled to appeal to pro-business interests in her first term, has lately taken a stronger stance against data centers. She’s supported local moratoriums and recently terminated a major data center project planned near Salem that involved the sale of state land.
Of course, Kotek has long been a friend of labor—policies she’s supported include the implementation and expansion of Paid Leave Oregon, the expansion of unemployment benefits to striking workers, and Oregon’s Construction Wage Theft Bill, Senate Bill 426.
A spokesman for Kotek’s campaign declined to answer questions.
“Gov. Kotek believes that data centers need to pay their fair share of energy costs, commit to clean energy, and manage their energy and water use better,” writes Kotek’s communication director, Federico Araujo. “Data centers need to be held accountable to high labor, environmental, and community standards. She believes local governments are doing the right thing in calling for a pause until we can get this right.”
At a candidate forum of the Oregon Newspaper Publishers Association last month, Kotek’s opponent, state Sen. Christine Drazan (R-Canby), drew a distinction between the Google data center in her district in The Dalles—which opened in 2006 and, she says, has benefited the community—and data center projects near Hillsboro, which have lately been loudly opposed by residents.
“I’m not going to make an arbitrary moratorium,” she said at the time, “but we shouldn’t have data centers in communities that don’t want them.”
There’s debate about how much a governor can do to stop data centers, though several have taken unilateral action. Earlier this summer, New York Gov. Kathy Hochul signed an executive order imposing a one-year statewide moratorium on new hyperscale data centers. Hochul is pausing state environmental permits on new data centers as the state builds up its regulatory framework.
