Labor union that supports data centers is giving big to Beshear

FRANKFORT, Ky. – A national labor union that supports building data centers has been pouring contributions into Gov. Andy Beshear’s super PAC this summer.

Last month, a political committee of the International Brotherhood of Electrical Workers (IBEW) gave $26,000 to the Beshear PAC called In This Together. This came on the heels of $130,000 in donations by IBEW committees to In This Together in June, and a $50,000 contribution to In This Together last September.

The total of $206,000 makes the IBEW the fourth largest donor to In This Together since Beshear created it shortly after his reelection as governor in 2023.

The IBEW has long been a big donor to pro-labor political committees in Kentucky and across the country. It gave big to a super PAC that supported Beshear’s reelection campaign in 2023.

Still, its contributions to Beshear this summer come amid a backlash of public concern that local communities will suffer because of the massive amounts of electric power, water and land required by hyperscale data centers.

Beshear executive order

On Aug. 6 Beshear issued an executive order which he said will protect the public from possible negative impacts of data centers such as higher utility rates and environmental damage. The order also requires data centers to pay their fair share of taxes.

Some experts are questioning how much “legal teeth” the order has without the backing of specific state laws addressing data centers. But Beshear says the protections in the order are “fully enforceable, and if you don’t believe it watch me — watch what happens when we move forward.”

Eric Hyers, who managed both of Beshear’s campaigns for governor and now is running In This Together did not address questions emailed to him about the IBEW contributions, but did say the executive order makes clear Beshear’s position on data centers.

The major force behind the nationwide development of data centers are tech giants that need massive computing power for artificial intelligence models, cloud computing and an array of other digital services.

IBEW backs data centers

But the IBEW strongly supports data centers because of the massive number of electricians it takes to build one.

Last spring the IBEW government affairs office in Washington put out a statement calling on all of its 900,000 members to urge their members of Congress to oppose any bills that impose bans on data center construction. “Such bans would eliminate critical opportunities for union workers and stunt much-needed economic growth in communities across the country.”

The IBEW statement says it supports data centers that are ‘built and operated responsibly, with strong protections for workers and their communities.”

The Kentucky Lantern contacted the IBEW’s media office in Washington and was told to send its questions about the Beshear contributions via email. The Lantern did. But the IBEW did not respond.

In This Together

In This Together is a political committee that Beshear created soon after his re-election as governor. Its purpose is to raise money to be donated to candidates and causes – both in and out of Kentucky – that Beshear supports. This helps Beshear win friends across the country as he explores a run for the Democratic nomination for president in 2028.

It is a type of political committee that can accept contributions of unlimited amounts from people, corporations, labor unions and other organizations. And its unorthodox structure requires it to report some of its donors to the Federal Election Commission and others to the Internal Revenue Service.

On Thursday the part of In This Together that reports to the FEC filed a report that showed it raised $340,000 in July. The second-largest contribution it reported during the month was the $26,000 from the IBEW.

The largest contribution was $50,000 from Michael Eisenson, of Boston, the managing director of the private equity firm Charlesbank Capital Partners. 

The only other contribution exceeding $20,000 came from J. Scott Hagan, the Louisville developer and chairman of Hagan Properties, who is listed as donating $25,000.

The report lists three contributions made by In This Together during the month: $10,000 to Democrat Beau Bayh’s campaign for Indiana secretary of state; $5,000 to the campaign of Cait Conley, a Democrat running for the U.S. House in New York; and $5,000 to the campaign of Chris Jones, a Democrat running for the U.S. House in Arkansas.