Nevada unions weigh AI-driven data center expansion against job losses

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Nevada unions and AI jobs

Highlights

Nevada Teamsters, representing 30,000 workers, are split on data center expansion as AI-driven automation displaces jobs in hospitality but generates construction work.
By 2035, RCG Economics projects up to 92,000 Southern Nevada hospitality jobs—about one-third of the sector—could be at risk from AI and automation adoption.
The Tahoe Reno Industrial Center expects to create 850,000 construction work hours per month in 2026, fueling local job growth and shaping state-level political alignments.

Election pressure builds around AI and data centers

As reported by Reuters, Nevada Teamsters are trying to forge a common position on AI and data center growth as their members face sharply different outcomes from the technology. The union network represents 30,000 workers across construction, transportation and hospitality, and its leadership says candidates who oppose worker protections or call for a full stop to new data-center construction are unlikely to win its backing.

Ross Kinson, the Nevada Teamsters' political director, says the issue has become a political balancing act as some members see years of construction work from data-center projects while others are already losing jobs to automation. The union began an internal process in April to settle on a stance before the November vote, and Kinson says the split makes the issue difficult for politicians to navigate.

That tension is especially visible in Las Vegas, where self-driving vehicles from Zoox and Waymo are replacing some human-driven taxi and valet work, robot bartenders are appearing on casino floors and hotel automation is spreading. Teamsters Local 986 is already losing casino call-center jobs to AI, while MGM Resorts laid off about 200 call-center workers last year, according to Kinson.

MGM declines to comment on the report and points to a 2023 labor contract with culinary union members that provides advance notice of AI-related job losses as well as healthcare and severance support. On a recent investor call, MGM International CFO Jonathan Halkyard says about 80% of guest interactions now take place through AI or digital platforms.

RCG Economics estimates that by 2035, AI and automation could put as many as 92,000 Southern Nevada hospitality jobs at risk, roughly one-third of the region's hospitality workforce. Economist John Restrepo says the way Las Vegas manages the shift will have major consequences for the local economy, particularly if companies use the technology mainly for large-scale job displacement.

Reno growth offers jobs while policy divide widens

In northern Nevada, the expanding data-center cluster at the Tahoe Reno Industrial Center is generating a different labor story. The development east of Reno, backed by companies including Google, Switch and Tract, is creating years of work for electricians, pipefitters and other union trades as one of the world's largest concentrations of data centers takes shape.

The International Brotherhood of Electrical Workers says the industrial center is generating 850,000 work hours per month in 2026, up from about the same number during all of 2022. For workers such as Christopher Williams, who moved from northern California to Reno last year, the projects offer higher pay and longer hours than service-sector jobs.

Local officials also see the projects as a buffer against Nevada's past reliance on gaming and tourism. Storey County Commissioner Clay Mitchell says the region's economy is becoming more stable and is creating opportunities for younger residents who want to stay in the area.

The divide is now shaping state politics. Kinson says the Teamsters have endorsed Democratic Attorney General Aaron Ford for governor after internal discussions over data centers and AI protections. Ford, who is challenging Republican Governor Joe Lombardo, supports halting new data-center tax abatements, protecting residents from higher energy costs and strengthening job safeguards tied to AI.

Lombardo has promoted data centers as a major economic driver and has described the sector as a new gold rush, though Kinson says the governor has moved more slowly on industry checks. In September, Lombardo imposed new restrictions on some tax incentives for the sector, but he does not respond to requests for comment.

Nevada's labor debate mirrors divisions elsewhere in the U.S. Sean McGarvey, president of North America's Building Trades Unions, says organized labor remains split over AI and data centers, but opposition to new facilities is unlikely to gain support from building trades groups that see the investment as a rare chance to reindustrialize the country.

Our earlier coverage of the U.S. AI data center boom highlighted how the buildout is running into real-world constraints, from higher financing costs and construction delays to limits on available power. We noted that a relatively small share of proposed projects appears truly credible, while cost overruns and shifting investor sentiment are making it harder for developers to deliver on ambitious plans. The piece also pointed to rising local pushback and stricter requirements for securing power supplies as additional hurdles to further expansion.

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