Blackstone is addressing community concerns around AI, CEO says

By Isla Binnie and ‌Arasu Kannagi Basil

NEW ​YORK, ​July 23 (Reuters) - Blackstone is working to address the societal and environmental implications of artificial intelligence development, CEO Stephen Schwarzman said ‌on Thursday, as opposition to data center construction mounts in ⁠the U.S.

Blackstone and other private capital firms are pouring tens of billions of dollars into ‌businesses and infrastructure that aim ‌to increase compute capacity and run power-hungry models.

But the otherwise deeply divided American electorate is united across party lines when confronted by ​the pace of data center construction, and only 14% would support one being built in their community for technology firms, according to a ⁠June Reuters/Ipsos poll.

Blackstone is working closely with portfolio companies including data-center businesses "to address the workforce, environmental ​and community implications of development through the creation of union jobs, workforce training, water-free cooling systems, expanded power generation ​and significant local economic investment," Schwarzman said ‌on a conference call.

While the impact of AI could echo the industrial revolution, which eventually raised living standards, Schwarzman ⁠said, "Major change of this type also creates anxiety due to the uncertainty of how the technology will evolve."

Data-center operator QTS, which Blackstone took private for $10 billion in ⁠2021, said earlier this month that it had terminated a project in Virginia after ​years of planning. The project had faced strong local opposition and litigation, despite being approved by county authorities.

U.S. President Donald Trump's administration sees AI development as a ‌race against China, but is also working to shield households from an attendant rise in energy costs.

Schwarzman, a longtime ‌Trump donor, said he had personally been "spending a lot of time with ⁠leaders in the industry and ‌various policymakers thinking about how ​to address these critical issues, while also preserving the advance of America's AI leadership."

(Reporting by Isla Binnie; Editing by ‌Nia Williams)

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