● Covered by 1 source · 1 reportMedium impact1 neutral
NDAs in Data Center Development Raise Transparency Concerns for Local Residents
Key points
- 25 of 31 localities with data centers use NDAs.
- NDAs restrict public information on data center projects.
- Officials state NDAs are crucial for economic development and competition.
- Residents feel excluded and distrustful due to secrecy.
Prevalence of NDAs in Data Center Projects
A study by University of Mary Washington researchers found that 25 out of 31 localities in Virginia with existing, approved, or proposed data centers utilize non-disclosure agreements. These agreements significantly hinder public access to information regarding these projects, leading to concerns among citizens.
Impact on Public Transparency and Trust
The widespread use of NDAs has left many residents with unanswered questions, fostering a sense of exclusion from decision-making processes and increasing distrust in local leadership. Citizens often discover data center plans belatedly, leading to heated debates with elected officials.
Officials Defend Secrecy for Economic Development
Local officials and economic development secretaries defend the use of NDAs, citing them as standard practice in the tech industry. They argue that signing these agreements is essential to compete for data center projects, which bring potential business and revenue to their jurisdictions. Louisiana Economic Development Secretary Susan Bourgeois stated that NDAs are "fundamental for economic development" and allow states to be "more forthcoming" by protecting shared information.
Wider Application of Confidentiality Agreements
The practice of signing NDAs is not limited to Virginia or Louisiana. Other towns across the U.S. have also signed such agreements, sometimes even before formal discussions with potential data center developers began. For example, in early 2026, several Wisconsin municipalities reportedly signed NDAs with Microsoft and Meta during negotiations.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
Research indicates that 25 out of 31 localities with data center projects use non-disclosure agreements (NDAs), limiting public access to information. These NDAs are defended by officials as necessary for economic development and competitive bidding, but residents express distrust due to lack of transparency.