Data centers, local government, and NDAs
Big tech companies are increasingly requiring local government officials to sign Non-Disclosure Agreements (NDAs) when negotiating new data center projects. This practice raises concerns about public transparency, as officials are legally obligated to keep key details about power grid usage, water consumption, and tax incentives confidential. Legal experts and open government advocates are challenging these NDAs, arguing that public officials cannot contract away their obligations under sunshine and public records laws.
WBRC 6 News investigated the growing trend of large tech companies requiring Non-Disclosure Agreements (NDAs) from local government officials during negotiations for new Artificial Intelligence (AI) data center developments. While companies assert that these NDAs are essential for protecting their site plans and trade secrets to maintain a competitive edge, the practice has sparked significant debate regarding government transparency.
Critics, including legal experts and open government advocates, argue that these confidentiality pledges compromise the public's right to know. They contend that publicly elected officials, tasked with negotiating crucial aspects such as power grid usage, water allocation, and tax incentives, cannot legally circumvent sunshine and public records laws by signing corporate NDAs. This creates a tension between fostering economic growth and ensuring public accountability for significant development projects.