A growing number of data center projects across the United States are being negotiated behind closed doors, with local governments signing non-disclosure agreements that keep project details hidden from the communities they will affect. Research from the University of Mary Washington found that of 31 localities with an existing, approved, or proposed data center, 25 have NDAs in place, making it difficult for citizens to obtain information about these developments.

What You Need to Know

NDAs have become standard practice for tech companies negotiating data center projects, but critics argue they undermine democratic decision-making. The secrecy has left residents in multiple states feeling betrayed by their elected leaders. Some officials, however, contend that without NDAs they would lose business to other regions. A Louisiana parish has shown that transparent negotiations are possible.

The Scope of Secret Data Center Talks

The problem extends far beyond a single state. In Wisconsin, at least four municipalities signed NDAs with Microsoft and Meta in early 2026 as they negotiated billion-dollar data center projects. The agreements often prevent officials from sharing details about land sales, tax incentives, and environmental reviews until deals are finalized. According to NPR, many residents first learn about data centers after agreements are signed, fueling distrust and anger.

  • Louisiana: Economic Development Secretary Susan Bourgeois told NPR that NDAs are fundamental for competition, preventing the state from running afoul of insider trading rules while allowing more openness behind the scenes.
  • Wisconsin: Four towns signed NDAs with Microsoft and Meta, leaving citizens in the dark about tax breaks and land use plans until projects became public.
  • Virginia: The University of Mary Washington study documented 25 NDAs among 31 localities, highlighting a national pattern of secrecy in data center development.

Why Developers Insist on Secrecy

Many officials defend NDAs as essential for economic development. They argue that tech companies require confidentiality to share proprietary information about power requirements, cooling systems, and site plans without alerting competitors or land speculators. The last thing companies want during early discussions is public disclosure of their strategic interests. Bourgeois told NPR that without NDAs, the state could not participate in negotiations at all. "The irony is that we use NDAs not to be more cloaked, we use NDAs to be more forthcoming," she said. Critics, however, see this as an excuse that excludes ordinary citizens from decisions that directly affect their property values, water usage, and local infrastructure.

A Rare Case of Transparency

West Feliciana Parish in Louisiana proved that data center deals do not require secrecy. Parish President Kenny Havard said economic development does not demand NDAs unless proprietary information is being shared. "When you're talking about land sales, tax incentives, those sorts of things that affect the citizens, it should be out in the open. It should be transparent," he told NPR. Havard emphasized that the parish completed its project without signing any NDAs, demonstrating that honest negotiations are possible. "We're proud that we did it without having to sign NDAs," he added.

Why This Matters

As demand for artificial intelligence infrastructure surges, data center construction is transforming rural and suburban communities at an unprecedented scale. The widespread use of NDAs erodes public trust and removes citizens from the decision-making process on land use, tax incentives, and environmental impacts. When details emerge only after contracts are signed, residents lose the ability to shape projects that will affect their quality of life for decades. This transparency gap threatens to create a backlash that could slow or halt necessary infrastructure expansion. The tension between corporate competitiveness and democratic accountability will only intensify as more data centers are proposed across the country.