Residents can gain a clearer picture of how data center projects reach their communities through a new University of Mary Washington study that measured how often local governments sign non-disclosure agreements before negotiations begin. The research found that of 31 localities with an existing, approved, or proposed data center, 25 had NDAs in place. These agreements make it difficult, if not impossible, for citizens to find information about the projects planned near their homes.
Researchers from the University of Mary Washington in Virginia examined the prevalence of confidentiality agreements between data center developers and local governments. The finding that 25 out of 31 localities use NDAs shows how common the practice has become across the country. According to NPR, residents in many of these communities say their questions go unanswered, leaving them feeling cut out of the decision process and increasing their distrust of local leaders.
Why Do Local Officials Sign NDAs for Data Center Projects?
Many officials defend the secrecy agreements as standard practice among tech companies. They argue that refusing to sign an NDA could cost their jurisdiction the potential business and revenue a data center project would bring. The fear of losing a deal to a neighboring state or county drives much of the decision-making around these agreements.
Louisiana Economic Development Secretary Susan Bourgeois told NPR that NDAs are fundamental for economic development because they allow the state to compete with other states and territories for data center business. She said the last thing developers want is for the information they share during negotiations to be disclosed publicly. Her position is direct: without NDAs, the state’s economic development work does not happen.
Bourgeois also offered a counterargument to critics who call the agreements secretive. She said the state uses NDAs not to be more cloaked, but to be more forthcoming. The reasoning is that developers share more detailed information when they know it will remain confidential.
Where Are These Secrecy Agreements Appearing?
The practice is not limited to Louisiana. Towns across the United States have signed secrecy agreements even before starting talks with potential data center projects. In early 2026, some Wisconsin citizens raised a similar issue when at least four municipalities reportedly signed NDAs with Microsoft and Meta as they negotiated with the two companies.
These confidentiality agreements drive heated debate between elected officials and ordinary citizens. Residents often feel betrayed and sold out when they belatedly learn that a data center will be built in their community. The delayed disclosure leaves little room for public input before a project is already far along in the planning process.
Can Data Center Deals Be Done Without NDAs?
West Feliciana Parish in Louisiana proved that a data center deal can close without keeping its details secret. Parish President Kenny Havard said economic development does not require NDAs. He told NPR that NDAs are only necessary when a developer brings proprietary information into a room. Land sales, tax incentives, and other items that affect citizens should be out in the open and transparent.
Havard said the parish is proud it completed the project without signing NDAs. His message is that these projects can move forward without keeping the people in the dark. The parish’s experience offers a counterexample to the argument that secrecy is a precondition for attracting data center investment.
What the Study Means for Local Transparency
The University of Mary Washington research quantifies a pattern that has been building as data center development accelerates. When 25 of 31 localities have NDAs, the exception becomes the rule. The study gives residents, journalists, and local officials a concrete figure to reference when debating whether confidentiality agreements serve the public interest.
The tension sits between two legitimate goals: the economic development that data centers bring and the public’s right to know what is being built in their community. The West Feliciana Parish example shows that transparency and development can coexist, but the 25 of 31 figure shows that most localities have chosen a different path.
FAQ
How many localities with data center projects have NDAs?
Researchers from the University of Mary Washington found that 25 of the 31 localities with an existing, approved, or proposed data center have non-disclosure agreements in place.
Why do local governments sign NDAs for data center negotiations?
Officials say NDAs are standard practice among tech companies and that refusing to sign could cost their jurisdiction the potential business and revenue a data center project would bring. 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.
Has any locality completed a data center deal without an NDA?
Yes. West Feliciana Parish in Louisiana completed a data center deal without keeping its details secret. Parish President Kenny Havard said economic development does not require NDAs, and that land sales and tax incentives affecting citizens should be out in the open.
Related coverage
- Vantage Data Center Generators Spark Noise Revolt in Virginia Town – BizScoreAI
- Google Business Profiles Local SEO Success Data
- AI Drives a Sharp Rise in Data Center Water Use
Try the free listing check
The free listing check scores how visible a business is to AI search and shows what its listing looks like to the engines people ask. Open the free listing check.
This article summarizes reporting from tomshardware.com. See our editorial disclaimer for how our articles are produced.
Run a free scan to see your AI Visibility Score, SEO rating, and local citation accuracy.