NDAs
Local Interventions
Ban the Use of Nondisclosure Agreements in Data Center Development Deals
Nondisclosure agreements (NDAs) are secrecy contracts signed between a data center developer and local government(s) that prohibit the government from sharing information about the data center development deal with the broader public. These are widely used in data center development—in Virginia, 25 out of 31 localities with an existing, approved, or proposed data center had […]
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Nondisclosure agreements (NDAs) are secrecy contracts signed between a data center developer and local government(s) that prohibit the government from sharing information about the data center development deal with the broader public. These are widely used in data center development—in Virginia,1 25 out of 31 localities with an existing, approved, or proposed data center had an NDA—and impede the public’s ability to make informed decisions about their community. Local governments should pass an ordinance prohibiting the city from entering into NDAs with data center developers, and in some jurisdictions may consider a broader prohibition on NDAs in large economic development projects. Local governments can also approve formal policies preventing or restricting the use of NDAs, and can institute sunshine periods that require public release of documents related to the data center development.
In some cases, banning or restricting NDAs might be done at the state level.
Strong example
The board of trustees in Big Rapids Township, Michigan, approved a policy prohibiting employees and elected officials from signing NDAs around issues pertaining to the public interest or taxpayer funding.
Example
Supervisors in Pima County, Arizona, updated the county’s NDA policy to institute a 90-day sunshine period prior to approvals or votes by a county public body. During this period, all NDAs expire and public disclosure of all details are required.
- Eric Bonds and Viktor Newby, “Data Centers, Non-Disclosure Agreements and Democracy,” Virginia Mercury, April 30, 2025, https://virginiamercury.com/2025/04/30/data-centers-non-disclosure-agreements-and-democracy/?utm. ↩︎
State & Regional Interventions
Ban Nondisclosure Agreements (NDAs) in Economic Development
NDAs are secrecy contracts signed between a data center developer and local governments that prohibit the government from sharing information about the data center development deal with the broader public. These are widely used in data center development—in Virginia, 25 out of 31 localities with an existing, approved, or proposed data center had an NDA—and […]
Read more
NDAs are secrecy contracts signed between a data center developer and local governments that prohibit the government from sharing information about the data center development deal with the broader public. These are widely used in data center development—in Virginia, 25 out of 31 localities with an existing, approved, or proposed data center had an NDA—and impede the public’s ability to make informed decisions about their community. States should pass laws prohibiting the localities from entering into NDAs with data center developers.
Federal Interventions
Ban the Use of Nondisclosure Agreements in Economic Development
Nondisclosure agreements (NDAs) are secrecy contracts signed between a data center developer and local government(s) that prohibit the government from sharing information about the data center development deal with the broader public. These are widely used in data center development—in Virginia, 25 out of 31 localities with an existing, approved, or proposed data center had […]
Read more
Nondisclosure agreements (NDAs) are secrecy contracts signed between a data center developer and local government(s) that prohibit the government from sharing information about the data center development deal with the broader public. These are widely used in data center development—in Virginia,1 25 out of 31 localities with an existing, approved, or proposed data center had an NDA—and impede the public’s ability to make informed decisions about their community. Congress can act to prohibit data center developers from entering into NDAs with state and local governments in large economic development projects.
- Eric Bonds and Viktor Newby, “Data Centers, Non-Disclosure Agreements and Democracy,” Virginia Mercury, April 30, 2025, https://virginiamercury.com/2025/04/30/data-centers-non-disclosure-agreements-and-democracy/?utm. ↩︎