Local data center critics praise Microsoft's pledge to stop using NDAs, but remain skeptical

Microsoft has pledged to stop signing non-disclosure agreements (NDAs) that have historically shrouded its data center proposals in secrecy, a move lauded by open government advocates. The announcement, made during Sunshine Week, aims to build community trust, particularly in regions like Wisconsin where public backlash against data center developments is growing. Wisconsin state Rep. Clint Moses, R-Menomonie, whose bill to ban data center NDAs stalled in the Legislature, welcomed Microsoft's decision but emphasized the continued need for legislative action to prevent local governments from signing such agreements. He noted that Microsoft had not signed NDAs in Mount Pleasant (Racine County) or Caledonia, where it eventually withdrew a data center proposal due to community opposition, but does have an NDA in Kenosha for a proposed project. Critics, including Midwest Environmental Advocates, offered qualified praise, suggesting that the pledge indicates significant prior community pushback. Sheboygan Falls Mayor Randy Meyer, president of the League of Wisconsin Municipalities, acknowledged the pressure local governments face to secure new development for tax revenue but argued against secrecy if data centers are truly unproblematic. Bill Lueders of the Wisconsin Freedom of Information Council also praised the move but urged greater transparency from local officials. The Wisconsin Watch investigation revealed at least five Wisconsin communities had signed data center NDAs, including Beaver Dam, where a Meta data center is under construction. Other companies like Vantage Data Centers, Oracle, OpenAI, and QTS Data Centers are also involved in projects across the state, facing similar transparency concerns. For example, the village of DeForest dropped a $12 billion data center proposal after it was revealed staff worked on it for months before public announcement. Blaine Halverson, an opponent in Menomonie, expressed skepticism about Microsoft's pledge, calling for proactive communication and engagement with communities from the outset.