States Target Data Center Nondisclosure Agreements
State leaders in Massachusetts, Delaware, and Pennsylvania are implementing executive orders to prevent data center developers from using nondisclosure agreements with municipal officials. This action aims to increase transparency and public awareness regarding economic development projects involving data centers, addressing concerns that communities are being kept in the dark.
Governors in multiple US states are taking action to limit the use of nondisclosure agreements (NDAs) by data center developers with municipal officials. These executive orders aim to increase transparency in economic development projects, which residents and lawmakers argue often leave communities uninformed.
Massachusetts Governor Maura Healey (D) recently issued an executive order, following similar steps taken earlier this summer by Delaware Governor Matt Meyer (D) and Pennsylvania Governor Josh Shapiro (D).
While NDAs are a common practice in early-stage economic development, these state leaders are seeking to prevent them from being used as a bargaining chip by data center developers, ensuring greater public scrutiny and community input on such projects.