Map Reveals States Where Data Center Projects Were Hidden Behind NDAs
Map shows states where data center projects were shielded by nondisclosure agreements, fueling transparency concerns nationwide.
As the demand for artificial intelligence-driven data centers surges in the United States, local governments have faced criticism for employing nondisclosure agreements (NDAs) that obfuscate critical information about proposed projects. Pennsylvania has emerged as a focal point in this debate, with an investigation revealing that four out of nine data center projects under Governor Josh Shapiro's former "Fast Track" permitting program required officials to sign NDAs with developers or associated entities.
Kline Township even ceased responding to records requests concerning potential confidentiality agreements. In response, Shapiro removed data centers from the state's fast-track permitting program and banned NDAs for future projects.
Virginia, known as the nation's largest data center hub, faced scrutiny after researchers discovered that 25 of 31 localities with existing, approved, or proposed data centers had signed NDAs with developers. Arizona, home to a proposed $3.6 billion Amazon project, has also become a hotspot. Senator Richard Blumenthal of Connecticut raised concerns after Amazon reportedly sought to restrict public discussion of details regarding the project.
Louisiana residents expressed frustration when negotiations for an Applied Digital data center project in Rapides Parish were conducted under NDAs. In Tennessee, xAI's high-profile Colossus facility near Memphis required government officials to sign confidentiality agreements, limiting public disclosure of information about the facility until it became operational.
Wisconsin and Indiana have also grappled with controversy, with at least four communities and Posey County, respectively, signing NDAs tied to major data center proposals.
The controversy surrounding NDAs has sparked a broader inquiry into transparency in data center development. Supporters argue that confidentiality agreements are essential for protecting proprietary information during sensitive business negotiations. However, critics contend that NDAs hinder public accountability and democratic decision-making.
The tension between rapid AI infrastructure development and transparency concerns has become so pronounced that Senator Blumenthal has launched a nationwide investigation into the use of NDAs and other restrictions limiting public disclosure of data center energy usage, water needs, and potential community impacts.
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