Gavin Baker: AI data centers are a boon for working-class America
Tech investor Gavin Baker argues that AI data centers are probably the best thing that has happened to working-class Americans, creating high-paying trade jobs for electricians, plumbers, and HVAC technicians while revitalizing small towns. The Atreides Management CIO made the case on The A16z Show, though he later softened his tone on social media.
When a prominent hedge fund manager calls a controversial infrastructure buildout a lifeline for blue-collar workers, people pay attention. Gavin Baker, managing partner and chief investment officer at Atreides Management, has become one of the loudest voices arguing that the AI data center boom is reshaping the American economy in ways that benefit ordinary wage earners—not just Silicon Valley.
His fund has invested in data center-related companies such as Crusoe, and Baker has used podcasts, social media, and follow-up posts to make a case that cuts against much of the public backlash over electricity use, water consumption, and local tax deals.
Key Takeaways
- Gavin Baker told The A16z Show that AI data centers are probably the best thing that has happened to working-class Americans, citing surging demand for electricians, plumbers, welders, and HVAC technicians.
- He pointed to towns like Quincy, Washington, where poverty fell from 29% to 6% and data center tax revenue funded schools, hospitals, and libraries.
- Baker initially wrote that any politician opposed to data centers is unqualified for office, then regretted the tone and acknowledged reasonable concerns from roughly 18 months ago.
- He argued well-structured projects now address water, power, tax, and environmental worries—and that the AI industry must do a better job telling those stories.
- Baker warned that insufficient data center supply, not overbuilding, could raise AI costs and widen access gaps through 2028.
What did Gavin Baker say about AI data centers?
On The A16z Show with a16z partner David George, Baker did not hedge. He said data centers are "really, really, really good" and that opposing them means missing what could be the best development for America's working class in years.
"It's probably the best thing that has ever happened to working-class Americans," Baker said on the podcast, according to Business Insider. "It is revitalizing all of these dying small towns all over America."
He framed the buildout as re-industrialization—something leaders in both parties have wanted for decades. Baker also argued on X that "any politician opposed to data centers is unqualified to hold public office," a line that drew attention and later prompted a walkback.
Why does Baker believe data centers help working-class Americans?
Baker's jobs argument centers on skilled trades, not desk jobs. He said learning to become an electrician, plumber, or HVAC technician can now yield "ungodly amounts of money" amid the AI boom—enough that a college degree may be "significantly NPV negative," or negative in net present value, for some young people.
Business Insider separately reported that one data center electrician skipped an undergraduate degree and now earns $40 an hour. Baker emphasized that demand is not a one-time construction spike. Data centers get upgraded and expanded over time, which is why building trades and some unions have pushed back against politicians who oppose projects.
On taxes, Baker cited Loudoun County, Virginia—both America's wealthiest county by some measures and a data center hub—collecting on the order of $1 billion a year in property taxes from facilities. In Quincy, Washington, poverty fell from 29% to 6%, and data center revenue paid for a new high school, hospital, library, and public safety buildings.
Did Gavin Baker walk back his data center comments?
Yes—partially. After his Saturday post declaring that opposing data centers should disqualify politicians from office, Baker posted again on Sunday to regret the tone. "What I should have said: There were reasonable concerns about data centers 18ish months ago," he wrote, listing water, taxes, jobs, electricity prices, the environment, and effects on small towns.
His revised message, reported by The Times of India, was that well-structured projects have largely addressed those concerns today. He wrote: "When the facts change, I change my mind."
Baker did not abandon his core thesis. He still called data centers "unambiguously awesome for blue-collar Americans" when projects are structured correctly. The shift was from absolute rhetoric to a more measured claim that critics should update their views as project standards have improved.
What concerns does Baker acknowledge about data centers?
In his follow-up post, Baker addressed the main objections head-on. On water, he said U.S. data centers use a fraction of what golf courses consume and that newer facilities use closed-loop or recycled systems. On power, he pointed to ratepayer-protection deals and large-load tariffs designed so households are not stuck paying for incremental demand.
Where those structures exist, he said utilities in some large states are cutting or freezing residential rates—and where they do not, he conceded people are right to object. On the podcast, Baker also claimed an "organized, CCP-funded campaign" against data centers gets "laundered through TikTok," echoing similar accusations from Garry Tan and Kevin O'Leary.
What does Baker want the AI industry to do next?
Baker's ultimate diagnosis is branding. "The only group that can tell the AI industry's truth is the AI industry," he said, "and they need to start telling the truth." He urged companies including SpaceX, Anthropic, OpenAI, Google, Meta, Nvidia, AMD, and Broadcom to share specific stories of real businesses and Americans helped by AI infrastructure—much as Sheryl Sandberg once opened Meta earnings calls with small-business success stories.
Separately, Baker warned that underbuilding poses a bigger near-term risk than overbuilding. He argued fewer than 10 million heavy AI users exist globally against 1.5 billion knowledge workers, and that token costs could rise sharply if supply lags demand through 2028—creating "computing inequality" favoring corporations and the wealthy.
What should readers take from Baker's argument?
Baker is not a neutral observer. Atreides Management invests in the ecosystem he champions, and his bullish case sits alongside real community fights over land use, rates, and environmental impact. Still, his framing connects two trends worth watching: the skilled-trades wage spike tied to AI infrastructure and the fiscal turnaround in towns landing major facilities.
For anyone weighing career paths or local economic bets, the debate is less about whether data centers are universally good and more about whether specific projects deliver the jobs, tax base, and rate protections Baker describes. Our Wealth Hacks & Passive Income hub tracks how technology shifts are creating everyday money opportunities in the AI economy.