The signs of artificial intelligence (AI)’s looming impact on employment are stacking up. Entry-level jobs in the U.S. have slumped by 35% since 2023, while major tech firms are laying off workers en masse.

At the Axios AI Summit in Washington D.C., Senator Mark Warner proposed a novel solution: taxing data centers to fund job retraining programs and address fears of massive job losses due to automation. This comes as public ire over AI’s environmental impact and potential for mass unemployment grows, with calls for a moratorium on new data center construction.

Warner argues that while AI hasn’t yet started taking jobs, the threat is palpable. His plan would see revenues from these taxes invested in areas like healthcare training or upskilling programs, ensuring communities benefit economically despite the tech boom.

The senator points to Henrico County, Virginia, as a potential model, where data center tax revenue was used to fund an affordable housing project. Warner believes such measures are necessary to balance the benefits of AI with its socio-economic costs, particularly in regions heavily reliant on data centers for economic growth.

However, Warner’s proposal faces significant challenges. Opponents argue that taxing data centers could hinder innovation and investment in cutting-edge technology, potentially giving an edge to competitors like China. The senator acknowledges these concerns but maintains that a fairer distribution of AI’s benefits is crucial to maintaining public support for the tech revolution.