Microsoft vows to end secret data center agreements with local governments

Microsoft has announced a significant policy change, stating it will no longer utilize non-disclosure agreements (NDAs) with local municipalities during the initial stages of data center development. The company framed this decision as a move to enhance transparency, foster public trust, and enable more effective dialogue with communities where it operates or plans to operate. The policy shift comes after considerable criticism and public opposition to data center projects, with local residents frequently citing a lack of transparency regarding these developments. A prominent example cited in the article is Microsoft's planned data center in Caledonia, Wisconsin, in 2025. Following strong opposition from residents due to initial secrecy, Microsoft ultimately withdrew its plans for that location, with President Brad Smith stating, "It doesn't make sense to go where people don't want us." While Microsoft noted that NDAs are a common industry practice to safeguard sensitive commercial information and streamline regulatory processes, Corporate Vice President Rima Alaily clarified that the company would still use NDAs for private land acquisitions and to protect trade secrets and data center design. Bill Lueders, president of the Wisconsin Freedom of Information Council, and Peg Sheaffer, communications director for Midwest Environmental Advocates, lauded Microsoft's decision, viewing it as an acknowledgment of effective public opposition. The change, however, does not impact Microsoft's ongoing and future data center campus development in Mount Pleasant, Wisconsin, where the village had no NDA with the company and has approved plans for 15 additional data centers.