SVLG's Ahmad Thomas: Beyond the Data Centers

Ahmad Thomas (0:10)

This is not a podcast where you just show up with some talking points, you know, you really do.

Scott McGrew (0:16)

I've had a few people discover that.

Ahmad Thomas runs Silicon Valley Leadership Group, funded by Big Tech, founded by David Packard nearly five decades ago. Today, Thomas is talking AI, data centers, and whether Silicon Valley can still afford to live in Silicon Valley. I'm Scott McGrew. Welcome to Sand Hill Road.

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Scott McGrew (1:58)

A recent Gallup poll found 7 in 10 Americans oppose data centers. Nearly half strongly oppose them. Ahmad Thomas doesn't.

Ahmad Thomas (2:08)

I think there's a much deeper issue here. It goes beyond the data centers, but to uncertainty and fear around AI.

And often, in my opinion, is it?

Scott McGrew (2:20)

So that's interesting. I mean, I understand both issues.

But AI may take my job or I don't understand AI, or I'm worried my kid is cheating with AI, those sorts of things. And what is that gigantic thing being built across the street that may hike my electricity? They're all part of the same thing, but I think there's two different fears.

Ahmad Thomas (2:41)

Yeah, they're part of the same thing, but I would say, and the arguments are different in different quarters.

But I would say that there is certainly a tie to say that this data center is enabling the rapid deployment and scaling of these technologies that I'm uncertain about. Yeah. I think that-

Scott McGrew (3:02)

Oh, I see. It's a physical representation.

Ahmad Thomas (3:04)

Exactly. It's a proxy, I would say, in certain quarters, certainly, for AI.

Now, I would say, again, you can ground those arguments in fact, and have responsible conversations about what good data center builds look like. And that's where our work is very, very focused from a legislative standpoint, from a public-private partnership standpoint. You also need to have honest conversations beyond water use, power, energy, etc. Again, where we've done a lot of work. You have to have honest conversations around AI and what economic and job impacts look like. I'm glad to talk about that. The data thus far most certainly does not show a wave of job loss connected to AI. No, it doesn't.

Scott McGrew (3:50)

And I want to talk more about data centers themselves, though. I mean, people are worried about power and water. Will it raise my electricity rates? If somebody is going to build something in my, not necessarily next door, but somewhere in my community, I need to know that information. And there's this push that, and you've said this, we can get community support, but there's been a push back against making companies disclose specifically what's going on.

You're nodding your head.

Ahmad Thomas (4:25)

Yeah. So again, these are complicated issues, and we certainly align with responsible builds that ultimately have positive community impacts and benefits. There are approaches that we've seen in New York and Southern California that take the step of banning data centers all together or over a certain period.

And we believe that is not the right way forward for progress. We believe what we're trying to model, and so many of our companies are leading, which is conversations about what responsible builds look like, innovating around infrastructure, and ensuring that the economic benefits that accrue based off of the rapid scaling and deployment of AI, accrue here to California and our communities.

Scott McGrew (5:12)

Well, and just like anything else that's being built in my community, I mean, there ought to be legal disclosure as to what this thing does, what it uses, what it emits. I mean, the Gallup numbers that we were talking about earlier, those are like nuclear power plant numbers. I mean, it's about the same. People would be opposed to that being in their backyard too.