A.I., the
Electricians and the Boom Towns of Central Washington
The
rural region is changing fast as electricians from around the country plug the
tech industry’s new, giant data centers into its
ample power supply.
The
tangy smell of Buffalo wings filled Side Chicks Sport Bar, as a dozen electricians
crammed their big frames into booths. It was Tuesday night in East Wenatchee,
Wash., and “brotherhood night” for the electrical union. Out-of-towners and
locals swapped notes on who was coming and going, when new jobs were starting
and what drama had gone down with a foreman.
Sean
Nickell, 32, and Chris Bennett, 35, sat in a booth below a television blaring a
Seattle Mariners baseball game. For years, they had followed each other to job
sites around the country without knowing it. “I have just met this man all of a
monthish ago, and the parallels are horrifying,” Mr.
Bennett deadpanned.
They
were here to build data centers, the brawny concrete
buildings with HVAC systems the size of tractor-trailers that power the new
artificial intelligence systems that the tech industry believes are the key to
its future — and perhaps the future of the entire economy.
Electricity
is the lifeblood of technology. And perhaps more than any computer technology
that has come before it, building A.I. needs vast amounts of computing and the
electrical power to make that happen.
So electricians are flocking to regions around the country
that, at least for now, have power to spare. These traveling electricians are
transforming the sagebrush here in central Washington, with substations going
up on orchards and farmland. Hundreds have come to a triangle of counties tied
together by hydropower dams along the Columbia River. They are chasing overtime
and bonuses, working 60-hour weeks that can allow them to make as much as
$2,800 a week after taxes.
For
all the hype over $100,000 chips and million-dollar engineers, the billions
pouring into the infrastructure of A.I. is being built by former morticians,
retired pro football linebackers, single moms, two
dudes described as Gandalf in overalls, onetime bouncers and a roving legend
known as Big Job Bob.
A.I.
is shaping up to be the kind of economy-bending force that inevitably creates
winners and losers. That’s true locally, where the construction work will
eventually slow down and the region will land on a new normal. But what the new
normal turns out to be is anyone’s guess.
Mr.
Bennett was from Erin, Tenn., a “middle-of-nowhere” town, where an electrician
he trained under suggested traveling because he could earn more, build more and
see that there was more to this world than just Tennessee.
In
central Washington, he makes twice what he could at home. “Our whole M.O. is
just to go to a big job like this one, work six days a week, for months at a
time, and then actually go home,” he says, plowing
through a skillet of ranch chicken waffle fries.
In
nearby Quincy, where data centers started going up
about 15 years ago for the internet boom that came before today’s A.I. boom, rumor has it that a local farmer sold his land for a data center and bought three Porsches — one red, one white, one
blue. The agricultural town is rich, though most residents are not. It has a
gleaming new high school, built with property taxes that one union official
described as “straight-up data center money.” Still, four out of five students are eligible for free lunch.
The
poverty rate for the district has inched down over the past decade, but how far it
goes — and whether the opportunities outweigh the rising costs of living — is
another open question.
In
Washington, the work is all union, a condition of a state tax break that has
saved the tech companies almost half a billion dollars. And the electrician union — the
International Brotherhood of Electrical Workers — is stretched: Microsoft alone
has said it will need 2,300 electricians in the coming years. The union plans
to train hundreds more apprentices.
Mr.
Nickell and his wife, a medical imaging technician, have been on the road full
time for six years. “We should be able to retire when I’m 43, 45,” he shrugged.
“Something like that.”
By
7:30 p.m., Side Chicks was emptying out. Work started at dawn.
From
the Ice Age to the Age of A.I.
Tumbleweeds
the size of trash cans blew across the road as Alex Ybarra, a state
representative, steered his black S.U.V. through Quincy, population 8,315. His
grandparents began cycling through this dead, flat land in the 1950s as
farmworkers. Eventually, they stayed. For decades, his mother trimmed potatoes
at the French fry factory that supplied McDonald’s.
Mr.
Ybarra left for college, and eventually came back and worked at the local
utility. “See all these streets?” he said, driving past the pink Mexican
mercado and under power lines. Many roads were just gravel, “and there was no sidewalks anywhere, even downtown.”
That
the modern internet would be powered from the sagebrush of central Washington
dates back partly to the cataclysmic floods at the end of the last ice age.
As
the climate warmed, a miles-wide ice dam on a glacial lake near Missoula,
Mont., repeatedly failed, sending water whooshing downhill. With more force
than all the world’s rivers combined, the water took just two days to haul
through Washington and Oregon, bursting out to the Pacific Ocean. The floods
carved narrow, vertically walled canyons that provided a tantalizing source of
hydropower a century ago.
ut the region, sparse and poor, could not afford dams. Around
1955, George Washington’s
great-great-great-great grandnephew,
a lawyer for the utility, helped broker a deal: The region’s richer areas
helped fund dam construction, but in return locked in cheap hydropower for half
a century.
When
the deal expired in 2005, the timing could not have been better. The utility
could keep more cheap, clean electricity for itself, just as big technology
companies were starting to build data centers for
their online businesses.
“When
the data centers said, ‘We need energy,’” Mr. Ybarra
recalled, “We said, ‘Oh yeah, we got plenty.’”
Microsoft
bought about 75 acres of bean fields in Quincy the next year.
Matthew
Hepner, a union leader, was an apprentice when he was assigned to work at that
data center; a straight-up concrete box, not even
painted.
But
the Great Recession arrived, and work halted.
“I
took a job trapping gophers for two bucks a tail to get by,” Mr. Hepner said.
Things
picked back up about two years later. Yahoo and other tech names set up shop,
as did independent data center companies that rented
their spaces. One developer used the code name Maserati for their client, but
everyone swore it was Microsoft.
Taxes
and Schools
In
2006, Washington State enacted its first sales tax break for data centers to encourage construction. For years, there had
been handshake agreements to build with union workers, Mr. Hepner said. “It
worked for a while, but corporations do what corporations do, trying to cut
costs.”
When
the tax breaks came up again in 2022, “we were like, ‘It stops right now or
this tax exemption goes away,’” said Mr. Hepner, who had lobbied for the union.
But
tax breaks pale in importance to finding power, land and labor.
Four of the largest tech companies spent more than $200 billion in the last
year on capital expenses, largely to build new data centers.
They’re expected to spend just as much or more next year.
“I
can’t think of a site selection or placement decision that was decided on a set
of tax incentives,” said Bo Williams, the executive responsible for Microsoft’s
data centers in North America.
The
data centers spread west from Quincy to the dusty
hillsides of East Wenatchee, then, recently, down the Columbia River to tiny
Malaga, using transmission lines that fed a shuttered aluminum
plant. The three clusters are strategic: Each is in a different county, with
its own utility and power supply. There are already about 50 data center buildings, and more than 1,500 electricians working
in the region.
Central
Washington is just one of dozens of “hot spots” on Where2Bro.com, an unofficial
bible for traveling electricians. The site lists gigs in Indiana, Iowa,
Georgia, Texas and beyond, all booming as tech companies crawl the electrical
grid for supply. Take the note from the union’s Local 124, based in Kansas
City. “WORK IN LU 124 SHOULD BE EXCELLENT FOR SEVERAL YEARS TO COME,” it
blared. “WILL NEED HELP FROM OUR TRAVELING BROTHERS AND SISTERS TO MAN IT.”
Data
centers have substantially increased the total value
of property in Quincy, Mr. Ybarra said, “so that means the data centers pay for about 75 percent of all taxes.”
Mr.
Ybarra, who was on the school board when it proposed a successful $108 million
bond for construction, pulled up to the high school, an expansive two stories
of glass and light wood floors, and wrapped around a courtyard.
Graduation
rates are high, but fewer than a third of students go to college, so the school
prepares them for trades. They weld in an agricultural fabrication shop and
learn stair construction — and geometry — at a wood shop. A group of girls were
training as wildland firefighters. The weight room has views of apple orchards
and there’s a community health clinic open to families.
Felicie Becker, the ball-of-energy principal,
said she loved the facilities, but more than anything, it was helping recruit
great teachers who had never considered a rural district with its many
challenges. Most students are poor, and about a third are learning to speak
English.
The
community is betting that the incredible building can translate to the kind of
life-changing education that lifts a family out of poverty.
In
Moses Lake, about a 30 minute drive, Mitch Molitor
caters to the steady business of traveling workers at Suncrest R.V. Park, which
he owns.
The
sloping site near the interstate had once been a nine-slide water park, but it went
into bankruptcy after its owner, a spud-farmer-turned-Ponzi-schemer, was
convicted in a commodities pyramid scheme. It now has a pickleball court. Many
residents come from Seattle, where construction has stalled, and return home on
weekends. A few bring families — there’s a school bus stop right outside.
Mr.
Molitor worries the data centers are a sugar high,
with few jobs in the long run. “They use a lot of ground, and they use a lot of
power,” he said. “I like to see the stuff that makes a bigger return to the
community.”
A
Housing Crunch and Union Jobs
Just
after 4:30 p.m. on a Thursday, a sea of hard hats streamed out of a data center built by the developer CyrusOne that everyone seemed
to think would be leased by Microsoft. (The tech company will not say.) They
poured into the long row of trailers serving as break rooms. Several dozen
ended up a few miles away at Monkey N’ Around Pizza.
Sharyl
Smith, the owner, said the weekly union nights were her “saving grace.” She
staffed up on Thursdays, so that no one waited on beers, and offered specials
to keep customers coming back. This week, it was $20 for baby back ribs, corn
on the cob, a cornbread muffin and jalapeño mac and cheese. She sold out in 30
minutes.
Nearby,
Jesus Zafra, 36, shared a meaty pizza with Juan
Ramirez, 28, from Dallas. They met at a data center
two years ago, when someone heard that both of their parents were from the
Mexican state of Oaxaca.
Mr.
Ramirez had left once the snow started falling. “This Texas boy said it was
time to go,” he drawled. But he had kept up with Mr. Zafra,
and was now renting a room for $850 from Mr. Zafra’s
cousin.
It’s
affordable, given what they make, but wild compared with old Quincy. Over the
past year, Douglas County, which includes East Wenatchee, had the greatest home price increases in the entire state. The median home
price is $519,000, up 18 percent in just one year.
Stacie
de Mestre, a director at a regional port authority, said the area was gripped
in a housing crisis. “I know everybody says they have one,” she said, “but
there is truly one here.”
As
a teen, Mr. Zafra and his grandfather picked rocks
out of the fields where data centers now stand. “When
our family members would come up to work, you could find a whole house for,
like, $600,” Mr. Zafra said. “Before the data centers.”
He
checked off the gigs he’d had so far: “Microsoft. Microsoft. Microsoft.
Microsoft. Maserati. And then CyrusOne.”
It’s
been good to him. He eats his meals out — birria burritos from the IGA market’s
deli counter, carne asada from Rich Tacos. “You see
these wiremen driving these nice trucks?” he said. “I’m one of them.”
At
the bar, one of the first journeymen he trained under, Nate Barrick, was
sharing Coronas and shots with a guy who introduced himself as Texas Mike.
Before becoming an electrician 16 years ago, Mr. Barrick installed lightning
protection, worked as a valet and “sold a lot of drugs.” A friend persuaded him
to sign up for an apprenticeship, and he forgot all about it. “They called me
two months later,” he said, “and that’s all she wrote.”
At
a gig in Omaha, he met a teacher online. “She quit and came with me, and she’s
been subbing everywhere we go,” he said.
Around
Thanksgiving 2022, Mr. Barrick had been working seven days a week at a data center in Central Oregon until the project shut down
overnight. He heard Quincy was hopping, and headed back to Washington. A year
ago, they bought a house.
More
jobs were posted while everyone ate their pizzas, and Mr. Barrick pulled up the
union website. Microsoft had work in East Wenatchee. “So
they want 10 guys,” he read. “For a year.”
Mr.
Zafra said he’d had family priced out of Quincy.
“It’s
sad, you know, but at the same time,” he said, “I’m part of the problem too,
because I’m working on them.”
When
Does the Electricity Run Out?
The
data centers spew jobs during construction, Mr. Zafra argued, but they employ only several dozen workers
once they are up and running.
His
buddy Drew Lampe conceded that might be true, but saw no end to the building.
Mr.
Zafra disagreed. “There is an end in sight,” he said.
“The
grid’s maxed out,” Mr. Zafra stated. “They can’t
build with no power.”
Around
here, power is the center of the rumor
mill. Everything that can be dammed, already is, so they need more transmission
and supply to keep growing.
There’s
hope that Helion, a nuclear fusion start-up that has a deal with Microsoft, may build its first substation at the
Malaga site. Bob Allen, a union representative, heard that Quincy might get a
new 500-megawatt transmission line from a federal power authority. “That would
give us another 10 years of work,” he said.
In
late September, word spread through break rooms that Microsoft had signed a deal to fire up the old Three Mile Island nuclear plant in Pennsylvania, driving home how their
fate was tied to electricity that was increasingly in short supply.
Building
more power also requires more electricians. There’s a reason the I.B.E.W. runs
recruitment ads during N.F.L. games. The union is also expanding its
apprenticeship program, which opened an East Wenatchee branch in 2022. But it
needs enough work for apprentices to be trained on.
“We’re
making a commitment — and I don’t have a crystal ball — to somebody for 8,000
hours, four or five years of their life,” said Rob Bartel,
the program’s cautious director.
“I’ll
sleep at night, way better, knowing there’s jobs,” he said.
Mr.
Williams of Microsoft said the company had been sharing labor
forecasts like never before, to give the union certainty that, “Hey, you know
what, a few years down the road we’re still going to be building and we still
need electricians.”
The
union sees an opening to diversify: the children of apple pickers, women.
Apprentices need a high school degree and a C in Algebra. In the current
classes, most were in their late 20s or 30s. They previously worked building
forklifts or as a repo man or selling cellphones.
They
are paired up with seasoned electricians, each teaching their own personal
tricks.
“You
get those old-timers,” said Aleesa Zyph, a mother of four, “and they’re like, ‘Stop bending
over to do that work! Your body will hate you.’”
On
a Friday morning, Mr. Nickell and his wife, Becca, were hanging around their
R.V. They rented from a local couple — she wires data centers,
he strings power lines — who installed two hookups in
the yard of their rambler.
Growing
up, Mr. Nickell’s parents did well building zip lines,
but he cared only about pole vaulting. After high school, they kicked him out
“for being a bum.” He slept on the mat at the gym. “My parents told me if I got
a job, I could come back,” he said.
He
recalled enjoying splicing together auxiliary cords to listen to a 1980s
stereo, so he found work as a nonunion electrician.
He coached at nights, and met Becca, who pole vaulted in college. He started
taking jobs on the road and joined the union to make more money.
“It
was culture shock to say the least,” Mr. Nickell said. Within three days of his
first job site, someone peeled an I.B.E.W. sticker off his Toyota Tacoma. An
older man from Oklahoma with a big beard and bib overalls explained why he
should not drive a foreign vehicle. Now he has a Ford.
Over
time, Mr. Nickell found his way, and community. He went to his first
brotherhood night at a bar in Indiana, and learned the rules of the road: Put
in eight hours of work for eight hours of pay, no more, no less. Do not be a
pushover on safety, and do not do more than you’re paid for, lest you be
considered “wormy.”
Over
the summer, Mr. Nickell and his wife bought a two-bedroom mobile home off
Facebook Marketplace for $145,000 near one of the dams. For now, they were
renting the rooms out to traveling electricians for $600 a month.
They
expected to hit the road again, and chase their bucket list of places to work.
But they will not be gone long.
“Eventually,
we’ll move our camper from here and go somewhere else,” Mr. Nickell said. “But, we’ll still have that to come back to.”