U.S. Data Center Projects Face Scrutiny Over Nondisclosure Agreements Limiting Public Transparency
Across the United States, a growing number of local governments are facing scrutiny for using nondisclosure agreements (NDAs) in connection with proposed data center projects. These NDAs restrict what officials can publicly disclose about these developments, which are rapidly expanding due to the demand for artificial intelligence infrastructure. Critics argue that these agreements reduce transparency regarding the projects' potential impacts on energy grids, water supplies, and local communities. Senator Richard Blumenthal of Connecticut has launched a nationwide investigation into the use of NDAs, asserting that communities deserve greater transparency about projects that could affect infrastructure and utility costs. Examples include Pennsylvania, where four of nine data center projects in a former 'Fast Track' permitting program involved municipalities with NDAs, and Virginia, where researchers found 25 of 31 localities with data centers had signed NDAs. Other states like Arizona, Louisiana, Tennessee,...