The warning signs of AI-driven job losses are becoming harder to ignore. Entry-level job postings in the United States have dropped by 35% since 2023, mass layoffs have swept across Big Tech, and even AI industry leaders themselves are warning about the disruption ahead.
At the Axios AI Summit in Washington on Wednesday, Senator Mark Warner, a Democrat from Virginia, shared some alarming anecdotes that illustrate just how fast things are moving. A venture capitalist recently told him he is writing software investments down to zero largely because of the capabilities of Anthropic's Claude, and a major law firm said it is no longer hiring first-year associates because AI can now handle much of the work once given to junior lawyers.
Warner described the fear of AI-related job loss as "palpable." And as those fears intensify, a critical question is emerging: who should pay to help workers through this transition?
Taxing Data Centers: Warner's Proposal
Warner has a clear answer — tax the data centers that power the AI revolution and channel that revenue into programs that help displaced workers. He has not yet introduced formal legislation, but the idea is gaining urgency as public frustration toward both AI and data centers grows.
Warner told TechCrunch he has been thinking about which part of the AI industry should bear the financial responsibility. Should it be chipmakers like Nvidia, the large language model companies, or the financial firms using AI tools to cut staff? After considering all the options, he concluded that the easiest place to collect revenue is probably from the data centers themselves.
The funds generated could be directed toward practical community benefits — things like training programs for new nurses or AI upskilling initiatives, as long as there is a tangible benefit to communities navigating this economic transition.
Rising Public Anger Against Data Centers
Warner's proposal arrives at a moment when public opposition to data centers is intensifying across the country. On the same day Warner spoke at the summit, Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez introduced a bill calling for a data center moratorium. Communities are raising concerns about noise pollution, environmental damage, and rising electricity costs linked to massive data center facilities.
However, Warner does not plan to support the moratorium bill. He argued that halting data center construction would simply allow China to move faster in the AI race, saying this is a competition the US cannot afford to lose.
Instead of stopping construction, Warner believes in imposing strict requirements to ensure data centers do not pass their water and energy costs onto local residents — while also making these facilities contribute to the communities they operate in.
A Precedent Already Exists
The concept of using data center revenue for community benefit is not entirely new. Warner pointed to Henrico County in Virginia, which used tax revenue from a local data center to launch a new affordable housing project. This kind of model, he argues, could be replicated across the country.
In Virginia specifically, there is already a proposal to repeal the state's tax breaks for data center construction, which cost the state and local governments nearly $2 billion a year in lost revenue — a significant figure in one of the world's largest data center markets. Warner believes other states may follow a similar path.
The Pitchforks Are Coming
The political pressure is real. According to a recent NBC News poll, AI has a lower public approval rating than Immigration and Customs Enforcement (ICE), with 46% of registered voters viewing AI negatively compared to just 26% viewing it positively.
Warner's message to the AI industry is straightforward: find a way to give back to the communities bearing the cost of this technological revolution, or face a serious backlash. As he put it, without tangible community benefits from data centers, "the pitchforks are coming out."
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