The bill would end NDAs that hide terms of data center deals from the public
On Thursday, Reps. Greg Landsman (OH-01), Tom Barrett (MI-07), and Jamie Raskin (MD-08) introduced the bipartisan No Secrets for Data Centers Act, which would limit the enforceability of NDAs tied to data center construction that involve public officials, land, or incentives. NDAs keep communities in the dark about siting and tax incentive deals and cut residents out of negotiations. Americans for Responsible Innovation (ARI) endorsed the legislation, which builds on ARI’s proposal for a Data Center Fair Deal, as a meaningful move that would empower communities as the data center buildout continues across the country.
“Americans need answers to their questions concerning how data center deals are cut before construction begins in their neighborhoods. Those answers begin with putting a stop to secret, broad NDAs,” said Brad Carson, President of Americans for Responsible Innovation. “Residents should have a say in whether and how data centers are built in their communities, and transparency will enable them to be a part of these important conversations. This is a critical step toward ensuring that communities can get fair deals before developers break ground.”
According to recent polling by ARI, the vast majority of voters support the disclosure of the terms of data center deals, including tax breaks, electricity arrangements, infrastructure commitments, and other data center incentives.
ARI recently hosted Terms of Service: Community Stewardship in the Data Center Era. The panel, which featured state and local officials from Ohio, Missouri, Georgia, and New York, emphasized the importance of daylighting data center impacts on communities.
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