Minnesota senators take up nondisclosure agreements on data centers

Minnesota senators have advanced a bill (SF4548), authored by Sen. Grant Hauschild (DFL-Hermantown), that would prohibit local elected and government officials from entering into nondisclosure agreements (NDAs) concerning data center developments. The legislation, which passed the Senate State and Local Government Committee, is a direct response to constituent concerns regarding a lack of transparency, specifically highlighted by a Google data center project in Hermantown where residents felt uninformed due to such agreements. Annie Harala, a St. Louis County commissioner who previously signed an NDA, testified in support of the bill, stating that such agreements create a barrier between officials and the public they represent. The bill specifically targets data centers, a point of discussion among senators, as a similar, broader proposal in the House aims to ban all NDAs for cities and counties. Sen. Andrew Mathews (R-Princeton) expressed concerns about singling out data centers, noting that state government also uses NDAs for other large projects like solar fields. The bill has been referred to the Senate Judiciary and Public Safety Committee. Separately, another bill (SF4298) proposing a statewide moratorium on new hyperscale data centers is also being considered. This moratorium would remain in effect until the Public Utility Commission completes a report on factors such as water and energy usage, but this bill has not yet been heard in committee.