NDAs Are Hiding Data Center Deals, Drawing Ire From Locals — and Attention From Lawmakers

NDAs are hiding data center deals, drawing ire from locals — and attention from lawmakers

Nondisclosure agreements covered up negotiations between a tech company and several local and state officials, surprising local residents. It's a tactic used around the country in data center deals.

In Louisiana, NDAs covered up a data center deal that residents didn't know was coming

Residents of tiny Boyce, La., yelled at local officials for signing agreements that hid a pending deal for a data center. NDAs, common in Louisiana data center deals, are coming under more scrutiny.

Many talks between data center developers and local governments are wrapped in secrecy behind non-disclosure agreements — residents question the need for NDAs, but developers argue it’s important to avoid ‘running afoul of insider trading rules’

Researchers from the University of Mary Washington in Virginia found that of the 31 localities with an existing, approved, or proposed data center, 25 of them have non-disclosure agreements (NDAs) that make it difficult, if not impossible, for their citizens to find information about these projects. According to NPR, these NDAs have left the questions of many residents unanswered, making them feel left out of the decision process and increasing …