Nevada finds itself at a critical juncture, a state grappling with a stark dichotomy shaped by technological advancement. In the vast desert east of Reno, over 100,000 acres are rapidly transforming into one of the world’s most significant data center hubs. This burgeoning digital infrastructure is fueling a sustained demand for thousands of skilled tradespeople, including electricians and pipefitters, ensuring years of employment for unionized workers. Simultaneously, approximately 400 miles southeast, along the famed Las Vegas Strip, the very artificial intelligence powered by these data centers is beginning to reshape the landscape of employment, sparking both opportunity and anxiety.
This dual reality has created a complex challenge for the Nevada Teamsters, a politically influential coalition representing 30,000 workers across the construction, transportation, and hospitality sectors. With many of their members heading to the polls for the November elections, the union faces internal divisions: some advocate for halting or slowing new data center construction, while others view the current boom as a vital economic boon.
"My job is to represent all of our unions," stated Ross Kinson, the Nevada Teamsters’ political director, highlighting the union’s ongoing efforts to forge a unified stance. "This is a very, very important issue to the building trades, and it’s providing a lot of jobs and creating good opportunities for a lot of people." However, Kinson also emphasized the need for members to consider the broader implications: "What is it doing to our jobs?" This internal deliberation mirrors a national debate concerning the appropriate pace of AI development and its potential to both displace and create jobs, prompting questions about its ultimate impact on society.
The Nevada Teamsters’ internal soul-searching is poised to significantly influence the state’s electoral outcomes. Ahead of the November elections, the union has engaged with over 180 political candidates from both major parties. Their endorsement criteria prioritize candidates who champion robust worker protections and those who approach the expansion of data centers with a balanced perspective, rather than advocating for outright bans. "It’s a political minefield for politicians to tiptoe through," Kinson observed, underscoring the delicate balance required to address this multifaceted issue. Nevada’s pivotal role is further amplified by its position in the 2028 presidential election cycle, serving as the second state to hold Democratic primary contests.
The Shadow of Automation on the Strip
On a sweltering suburban street just off the Las Vegas Strip, 63-year-old Larry Goldfinger, a seasoned Teamster, and his colleagues, whom he wryly calls "the walking dead," are engaged in a door-to-door campaign. Armed with clipboards, they are advocating for candidates they believe will safeguard the city’s workforce from the encroaching tide of AI-driven job displacement. Goldfinger, who has dedicated nearly three decades to a career as a valet at iconic Strip casinos and another decade in various Vegas hospitality roles, now fears for the future of his profession as AI automation encroaches on services ranging from concierge duties to bartending.
"I raised my family, and I have had a good life doing it, and I feel like these guys that are 30ish aren’t going to be able to do that," Goldfinger expressed, shielding himself from the Nevada sun with a Teamsters baseball cap. His concerns are echoed by economic projections. An analysis by RCG Economics suggests that by 2035, AI and automation could place as many as 92,000 hospitality jobs in Southern Nevada at risk, representing approximately one-third of the current workforce in that sector.
The impact is already being felt. Teamsters Local 986 has witnessed a decline in call center positions at casinos due to AI automation. Concurrently, taxi drivers and valets face increasing competition from the expanding fleets of autonomous vehicles operated by companies like Waymo and Zoox. The integration of robot bartenders and self-service hotel check-in kiosks is also becoming increasingly commonplace.
MGM Resorts, a major player in the Las Vegas hospitality scene, confirmed significant workforce adjustments. Last year, the company laid off approximately 200 call center employees. During a recent investor call, MGM International CFO Jonathan Halkyard noted that "about 80% of guest interactions now take place via AI/digital platforms." While MGM declined to comment for this report, they directed inquiries to a labor agreement reached with culinary union members in 2023. This agreement includes provisions for advanced notification of AI-related job losses and guarantees healthcare and severance pay for affected employees.
The Las Vegas economy has a historical resilience, having weathered numerous booms and busts, often driven by technological shifts. However, John Restrepo, principal of RCG Economics, emphasizes that the current AI era presents unique challenges. "If they use those tools to just do massive job displacement, that’s not going to be good," he stated, highlighting the potential negative consequences of unchecked automation. Goldfinger further articulates his apprehension, suggesting that the proliferation of AI in Las Vegas might not only lead to job losses but also diminish the city’s appeal to tourists accustomed to the personalized service provided by human hospitality staff. "We are not against the changes," he clarified. "We just want to make sure we are involved in how it’s changing."
A New Digital Gold Rush in Northern Nevada
Meanwhile, in northern Nevada’s high desert, a different narrative is unfolding. Every morning, Christopher Williams joins the steady stream of traffic along USA Parkway, heading towards the rapidly expanding data center complex in the Tahoe Reno Industrial Center. This area, once the site of a 19th-century gold rush that briefly earned Storey County the moniker "the richest place on earth," is now experiencing a new kind of boom.
Williams, a 20-year-old former line cook from northern California, relocated to Reno last year after struggling to secure sufficient hours and earning a modest $18.50 per hour. Now, working in the data center sector, he earns over $22 per hour, with weekly hours ranging from 45 to 60. "I might not fully agree with data centers being built everywhere, but they are helping a lot of people," he commented. "If I don’t take the job, somebody else will, and it’s a lot of money left on the table."
For local officials, the Tahoe Reno Industrial Center has served as a critical economic lifeline, particularly after a prolonged period of decline. "We’re finding that our economy is more stable than it used to be as a primarily gaming and tourism economy, and it’s providing opportunities, especially for young people that want to stay," remarked County Commissioner Clay Mitchell. The economic impact is substantial. According to the International Brotherhood of Electrical Workers, the Tahoe Reno Industrial Center generated approximately 850,000 work hours per month in 2026, a significant increase from the roughly equivalent total for all of 2022. This surge in construction and operational activity translates directly into sustained employment for skilled trades and related support services.
Navigating the Political Landscape
The Nevada Teamsters’ internal deliberations have culminated in an endorsement of Democratic Attorney General Aaron Ford for governor. Ford, who is challenging Republican incumbent Governor Joe Lombardo, has proposed a multi-pronged approach: halting new data center tax abatements, mandating that developers mitigate the impact of increased energy costs on residents, and advocating for stringent regulations to protect jobs from AI-driven disruption. This platform, according to Kinson, strikes the "right balance" to appeal to the diverse interests within the Teamsters’ membership. Ford reportedly consulted with the Teamsters before unveiling his data center policy this summer and held his inaugural town hall on the issue at Teamsters Local 14.
Governor Lombardo has historically championed data centers as a significant economic engine, referring to the industry as a "new gold rush." However, Kinson suggests that Lombardo has been slower to implement checks and balances on the industry. In September, Lombardo did introduce new restrictions on some of the generous tax incentives that initially attracted the data center industry to Nevada. Lombardo’s office did not respond to requests for comment.
The influence of unions in Nevada is substantial. According to the Bureau of Labor Statistics, union members constituted approximately 13% of wage and salary workers in Nevada in 2025, exceeding the national average of 10%. This makes the Teamsters’ endorsement a significant factor in electoral outcomes.
The data center debate has also become a focal point for union endorsements in other parts of the country. In Kansas, for instance, Republican gubernatorial candidate Ty Masterson secured backing from the state’s largest transit and railroad union, as well as a local chapter of the IBEW, after his Democratic opponent, Cindy Holscher, advocated for a moratorium on data center development. This marked a notable shift, as the Kansas transit union had not endorsed a Republican for governor in over 50 years.
Sean McGarvey, president of North America’s Building Trades Unions, acknowledges the division within the broader labor community regarding AI and data centers, mirroring the situation in Nevada. However, he firmly opposes outright bans on new data center construction. "We don’t throw the baby out with the bathwater," McGarvey stated. "This is one of those once-in-a-lifetime opportunities to reindustrialize the country." This perspective underscores a segment of the labor movement that views the current wave of data center development and technological advancement as a critical opportunity for national economic revitalization, provided it is managed responsibly.
The juxtaposition of a booming data center construction sector in northern Nevada and the emerging challenges of AI-driven job displacement in the hospitality industry of southern Nevada presents a complex socio-economic and political landscape. As Nevada heads into an election cycle, the decisions made by its workforce, particularly the influential Nevada Teamsters, will likely shape the state’s approach to technological advancement and its impact on the livelihoods of its citizens for years to come. The state’s ability to balance economic growth with worker protections will be a defining characteristic of its future.
