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 chip factory in New York state, a coalition of environmentalists, labor unions and civil rights groups are urging the U.S. tech giant to sign an agreement that would make a series of legally enforceable promises to be a good neighbor.

Micron’s megafab to make memory chips is on track to become the largest commercial development in state history and the largest chipmaking complex in the country. Officials held a groundbreaking ceremony last Friday in the city of Clay, near Syracuse. The first chips could arrive in five years, although the entire site will not be finished for 20 years.

Organizers and members of the Central New York United for Community Benefit 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 working locally and addressing some of the physical and social impacts of its manufacturing. But coalition members believe there is a lack of oversight and Micron can get away with polluting the environment and worsening the region’s economic inequality.

“We want real, strong, transparent and enforceable commitments,” says Anna Smith, a senior researcher at Jobs to Move America, a union-friendly national nonprofit that is helping organize the coalition.

On Wednesday, the coalition published an emailed letter to Micron CEO Sanjay Mehrotra, inviting him to meet and begin negotiations on an agreement, known as the Community Benefit Agreement, that would codify the company’s pledges on hiring, environmental protection and local investment.

Micron did not immediately respond to a request for comment on the letter.

Companies like Micron are not obligated to make deals with community groups. But the New York coalition is basing its campaign on similar efforts by other US organizations. Some of them have successfully pressured large construction projects like airports and bus factories to sign contracts to invest in schools, build affordable housing, conduct more environmental studies, or shop locally. Importantly, these agreements are enforceable through the courts.

Supporters of the agreements say making deals can help companies neutralize opposition and clear an easier path for construction, hiring and ongoing integration into the community. Provisions may include oversight panels 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 agreements like this one made by companies in coalitions like ours across the country that become win-wins, where employers, workers and community organizations work together to meet the needs of all parties,” the New York coalition said in a letter to Micron.

It said a comprehensive deal would “further fulfill Micron’s commitments to being a good neighbor” and ensure that good-faith promises “are translated into concrete, measurable benefits.”

Manufacturing more chips in the US is a national security priority, and the Micron project has bipartisan support. But it comes at a time when large-scale fabs and data centers are receiving unprecedented public scrutiny, driven primarily by significant water and electricity consumption.

Amid the protests, some projects have already been abandoned or shifted. Organizers of the New York coalition believe the Micron campaign, if it leads to a deal, could be a blueprint for winning concessions as development moves forward. “This project can be done well,” says Smith. “Let’s reach the finish line together.”

looking for commitment

Coalition members include environmental advocates Sierra Club Atlantic Chapter and SustainNY; racial justice group Urban Jobs Task Force and the Syracuse chapter of the NAACP; and labor organizations including Local 320 of the IUE-CWA, a union representing factory workers.

They focused on Micron in part because its project could receive public subsidies – up to $25 billion. The company’s promise to employ 9,000 people has drawn support, but some in the community are concerned about the deal. One troubling issue is that local officials are evicting a 91-year-old great-grandmother from her 60-year-old home to make way for Micron.



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