Data center developers are pushing Pa. government officials to sign secrecy agreements. At least some are saying yes.
Data center developers in Pennsylvania are using nondisclosure agreements (NDAs) with local and state officials, limiting transparency regarding new projects. This practice has raised concerns among officials and residents, leading to proposed state legislation to ban or disincentivize such agreements. Specific projects in Anthony, Kline, and Limerick Townships are cited as examples of this trend.
This article details the growing concern in Pennsylvania over data center developers using nondisclosure agreements (NDAs) with elected officials, limiting public access to information about proposed projects. Anthony Township Supervisor Craig High famously refused to sign an NDA with Talen Energy, only later learning they were planning a data center in Montour County. Similarly, Schuylkill County Board of Commissioners Chair Larry Padora signed an NDA for a project in Kline Township, which he later revealed was for Amazon, but stated it was unenforceable under state transparency laws.
First Amendment scholars and legal experts, including Melissa Melewsky of the Pennsylvania NewsMedia Association, argue that these NDAs undermine lawmakers' obligations to their constituents and public transparency. Data Center Coalition Vice President Dan Diorio defends NDAs as common business practice to protect competitive interests, though he acknowledges the need for regulation. Residents across the state, like those in Anthony and Kline Townships, have voiced strong opposition, citing the secrecy as a major concern.
Pennsylvania lawmakers are actively addressing the issue. State Sen. Tracy Pennycuick (R., Montgomery) has introduced a bill to ban public agencies from signing NDAs with data center developers, citing a proposed 1.4 million-square-foot data center in Limerick Township where end-user information is withheld. State Rep. Joe Ciresi (D., Montgomery) proposed amending a tax exemption for data centers to only apply to those that forgo NDAs. Both bills have seen progress in the state House and are awaiting Senate consideration, reflecting a bipartisan effort to enhance transparency in data center development.
The article highlights a fundamental tension between corporate confidentiality and public officials' accountability, with legal experts warning of potential chilling effects on public discourse and decision-making when major projects are negotiated behind closed doors.