Residents in communities negotiating data center projects can now see exactly how often these talks happen out of public view, thanks to a new count from the University of Mary Washington. Researchers there examined 31 localities with an existing, approved, or proposed data center and found that 25 of them operate under non-disclosure agreements that make it difficult, if not impossible, for citizens to find information about the projects. The finding puts a precise number on a practice that has left many residents feeling shut out of decisions affecting their towns, their tax bases, and their power grids.
The secrecy agreements have fueled rising distrust between residents and elected officials. Many locals first learn a data center is coming only after the deal is effectively done, which has triggered protests and, in some cases, threats against local leaders.
What the university study uncovered
Researchers from the University of Mary Washington in Virginia looked at localities across the country with data center projects at various stages. Among the 31 they reviewed with an existing, approved, or proposed data center, 25 had signed NDAs. The agreements restrict what officials can share about negotiations, project timelines, land sales, tax incentives, and other terms that directly affect residents.
According to reporting cited by the university, the unanswered questions from these NDAs have made residents feel left out of the decision process and increased distrust of their leaders. The pattern is not limited to one region. In early 2026, at least four Wisconsin municipalities reportedly signed NDAs with Microsoft and Meta while negotiating data center projects, raising similar objections from citizens there.
Why public officials defend the agreements
Many officials argue the NDAs are standard practice in economic development and that refusing to sign one means losing the project to another state or jurisdiction. Louisiana Economic Development Secretary Susan Bourgeois said NDAs are fundamental for economic development because they allow the state to compete with other states and territories for data center business.
“The last thing that they want to have happened in the beginning of the discussion, or in any part of the discussion, is for their information that they’re sharing to be disclosed publicly. So, without NDAs, our work, frankly, just doesn’t happen,” Bourgeois said. She added, “The irony is that we, we use NDAs not to be more cloaked, we use NDAs to be more forthcoming.”
Developers make a different argument: that keeping negotiations quiet helps avoid running afoul of insider trading rules, since early discussions could move markets if details leaked before deals were final.
One parish shows transparency is possible
West Feliciana Parish in Louisiana demonstrated that a data center deal can be completed without keeping the terms secret. Parish President Kenny Havard said economic development does not require NDAs.
“I don’t think NDAs are necessary unless they’re going to bring you in a room and share some proprietary information. 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,” Havard said. He added, “We’re proud that we did it without having to sign NDAs. And I think it just shows that you can do these projects without keeping the people in the dark.”
Public opposition keeps growing
The confidentiality agreements are a central flashpoint in the broader national debate over data center development. Residents who feel betrayed when projects surface after the fact have organized protests, and local officials have faced death threats and gunfire over data center decisions. The tension has also prompted new legislation aimed at making data centers pay for grid upgrades, with New York State recommending that AI data centers pay $1 million in community investment per megawatt.
For communities weighing a data center proposal, the West Feliciana example shows that local leaders can negotiate land sales and tax incentives in the open and still close a deal. The university study gives residents a benchmark to compare their own locality against: 25 of 31 projects behind NDAs means transparency remains the exception, not the rule.
FAQ
What did the University of Mary Washington study find about data center NDAs?
Researchers found that of 31 localities with an existing, approved, or proposed data center, 25 had non-disclosure agreements in place. The NDAs make it difficult or impossible for residents to find information about the projects.
Why do local officials sign NDAs for data center projects?
Officials say NDAs are standard practice in economic development and allow their state or locality to compete for projects. Louisiana Economic Development Secretary Susan Bourgeois said that without NDAs, the state’s economic development work “just doesn’t happen.” Developers also argue NDAs help avoid insider trading concerns during negotiations.
Has any locality completed a data center deal without an NDA?
Yes. West Feliciana Parish in Louisiana completed a data center deal without signing NDAs. Parish President Kenny Havard said NDAs are unnecessary unless proprietary information is being shared, and that land sales and tax incentives affecting citizens should be transparent.
This article summarizes reporting from tomshardware.com.