Micron Megafab Project Faces a New Hurdle as Activists Seek a Benefits Deal
A few days after Micron After breaking ground on a $100 billion microchip factory in New York state, a coalition of environmentalists, labor unions and civil rights groups is urging the U.S. tech giant to sign a deal that would make enforceable a series of pledges to be a good neighbor.
Micron’s megafactory to make memory chips is poised to become the largest commercial development in state history and the nation’s largest chip manufacturing complex. Officials held a groundbreaking ceremony in the town of Clay, near Syracuse, last Friday. The first chips could arrive in five years, but the entire site won’t be finished for another 20 years.
Organizers and members of the Central New York United for Community Benefits Coalition, made up of about 25 mostly local advocacy groups, tell WIRED they welcome the project. They also appreciate that Micron has already committed to hiring locally and addressing some of the physical and social impacts of its construction. But coalition members say oversight is lacking and that Micron could pollute the environment and worsen the region’s economic inequality.
“We want to have real, strong, transparent and enforceable commitments,” says Anna Smith, senior researcher at Jobs to Move America, a national pro-union nonprofit that is helping organize the coalition.
On Wednesday, the coalition released an emailed letter to Micron CEO Sanjay Mehrotra inviting him to meet and begin negotiations on what is known as a Community Benefits Agreement, which would codify the company’s commitments to hiring, environmental protection and local investment.
Micron did not immediately respond to a request for comment on the letter.
Companies like Micron are not required to enter into agreements with community groups. But the New York coalition is basing its campaign on similar efforts by other American organizations. Some of them have successfully lobbied major construction projects, like an airport and a bus factory, into signing contracts to invest in schools, build affordable housing, conduct more environmental studies, or buy locally. Importantly, these agreements can be enforced by the courts.
Proponents of agreements say reaching agreements can help companies neutralize opposition and provide a smoother path to construction, hiring and continued integration into the community. Arrangements may include oversight committees and annual public reporting. A database compiled by Columbia Law School shows dozens of benefit agreements for major projects over the past decade.
“We have seen such corporate-brokered agreements with coalitions like ours across the country become a win-win, where employers, workers and community organizations work together to ensure that the needs of all parties are met,” the New York coalition wrote in the letter to Micron.
He added that a comprehensive agreement would “further fulfill Micron’s commitments to be a good neighbor” and ensure that good faith promises “translate into concrete, measurable benefits.”
Building more chips in the United States is a national security priority, and the Micron project has bipartisan support. But it comes at a time when manufacturing plants and massive data centers are the subject of unprecedented public attention, largely driven by their significant consumption of water and electricity.
In a context of decline, certain projects have already been abandoned or moved. New York coalition organizers say the Micron campaign, if it results in a deal, could serve as a model for extracting concessions even as development moves forward. “This project can be done well,” Smith says. “Let’s go to the finish line together. »
Looking for commitment
Coalition members include environmental advocates Sierra Club Atlantic Chapter and SustainCNY; racial justice groups Urban Jobs Task Force and the Syracuse chapter of the NAACP; and labor organizations, including IUE-CWA Local 320, a union representing factory workers.
They focused on Micron in part because of the government subsidies its project could receive – as much as $25 billion. The company’s promise to employ 9,000 people has drawn widespread support, but some community members remain concerned about the tradeoffs. A compounding point is that local authorities are moving a 91-year-old great-grandmother from her home of 60 years to make way for Micron.
