Key facts
- Blackstone CEO Stephen Schwarzman stated the firm is addressing societal and environmental implications of AI development.
- Opposition to data center construction is mounting across the U.S.
- Blackstone is investing heavily in AI infrastructure and related businesses.
- Schwarzman noted that major technological change creates anxiety due to uncertainty.
- Data-center operator QTS, owned by Blackstone, terminated a project in Virginia due to local opposition.
Blackstone is actively working to address the societal and environmental concerns surrounding artificial intelligence development, according to CEO Stephen Schwarzman. This comes as opposition to the construction of data centers, crucial for AI infrastructure, intensifies across the United States. The firm, alongside other private capital entities, is investing billions into businesses and infrastructure that support AI compute capacity and power-hungry models.
Schwarzman highlighted that Blackstone is collaborating with its portfolio companies, including data-center businesses, to manage the implications of development. These efforts involve creating union jobs, implementing workforce training programs, adopting water-free cooling systems, expanding power generation, and making significant local economic investments. He acknowledged that while AI's impact could be transformative, akin to the industrial revolution, such profound change also generates anxiety due to technological uncertainty.
Illustrating the challenges, QTS, a data-center operator acquired by Blackstone for $10 billion in 2021, recently canceled a project in Virginia following years of local opposition and litigation, despite prior approval from county authorities. The U.S. administration, under President Donald Trump, views AI development as a critical race against China, while also seeking to mitigate the impact of increased energy costs on households. Schwarzman, a noted donor to Trump, indicated he has been actively engaging with industry leaders and policymakers to navigate these issues while preserving America's AI leadership.