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Blackstone CEO addresses AI concerns raised by the community

Stephen Schwarzman, Blackstone's CEO, said that the company is addressing the social and environmental implications of artificial intelligence, as opposition to the construction of data centers in the United States grows.

Blackstone and private capital firms pour tens or hundreds of millions of dollars in infrastructure and businesses that are aiming to increase computing capacity and run models that consume a lot of power.

A June /Ipsos poll found that the deeply divided American electorate was united by their opposition to the construction of data centers. Only 14% said they would "support" a facility being built for technology companies in their locality.

Schwarzman, on a recent conference call, said that Blackstone works closely with its portfolio companies, including the data-center business, "to address workforce, environmental, and community implications through the creation union jobs, training for the workforce, water-free cooling systems, increased power generation, as well as significant local economic investments."

Schwarzman stated that while AI's impact could be similar to the Industrial Revolution, which ultimately raised living standards, it also causes anxiety because of the uncertainty about how technology will evolve.

Blackstone, the private equity firm that bought QTS for $10 billion dollars in 2021, announced earlier this month it had halted a Virginia project after years of planning. The project was halted after years of planning due to a'strong local opposition, litigation and disagreements.

The U.S. administration of President Donald Trump sees AI development as a race with China but also works to protect households from the rise in energy prices that will follow.

Schwarzman, who has been a Trump donor for many years, said he personally spent "a lot of time" with leaders in the AI industry and policymakers to think about ways to deal with these issues while maintaining America's AI lead. (Reporting and editing by Nia William; Isla Binnie)

(source: Reuters)