Oracle promises more jobs after protests against mega-datacenter for OpenAI

Oracle says the new AI data center in New Mexico will create twice as many permanent jobs as previously promised. But opponents continue to worry about the impact on water, energy and the environment.

The mega-data center Oracle is building for OpenAI in Doña Ana County, near the Mexican border, will eventually create around 1,500 permanent jobs, the tech giant says. That's double the previous estimate.

In a statement on LinkedIn, CEO Pradeep Vincent says that the project will bring “sustainable infrastructure and long-term economic benefits”.

The promise comes at a time of growing resistance to the rollout of AI data centers. Local governments and residents are concerned about the high energy and water consumption, while employment is often disappointing.

Oracle tries to be ahead of the criticism. The company says that the data center runs entirely on its own gas generators and thus does not put any pressure on the public electricity grid. In addition, the cooling water is continuously reused, so that the consumption would be comparable to that of an office building.

The project, which is internally called ‘Project Jupiter’, is part of a larger contract with OpenAI. It already got tax breaks and support through bonds. Despite this, it led to protests, mainly due to environmental concerns.

Oracle is not alone. Other tech giants such as Microsoft and Meta have similar charm offensives. They publish studies showing that their data centers do not cause price increases and make commitments to local communities.

Oracle states that it pays “hundreds of millions” to Doña Ana County, money that should benefit schools and water infrastructure, among other things. Nevertheless, the question remains as to whether such commitments can alleviate the structural concerns of local residents.