Nearly half of Pennsylvania's 'fast track' data center municipalities signed NDA's
Nearly half of the Pennsylvania municipalities involved in the state's 'fast track' data center program signed non-disclosure agreements (NDAs) with developers, raising concerns about public access to information. Governor Josh Shapiro initially supported the fast-track program but later issued an executive order prohibiting NDAs for data center projects under state agency jurisdiction. A U.S. Senator has also launched a national investigation into the use of NDAs by data center companies.
Right-to-Know requests submitted to 30 Pennsylvania municipalities with data center proposals revealed that nearly half of those on Governor Josh Shapiro's 'fast track' permitting list had signed non-disclosure agreements (NDAs) with companies. This practice is sparking concerns among transparency advocates and legal experts that public access to crucial information about major projects is being compromised.
Specific instances include Salem Township (Luzerne County) signing NDAs with Amazon and QTS, Falls Township (Bucks County) signing one with an attorney representing Amazon, and Shippingport Borough (Beaver County) signing an NDA with Oracle America Inc. (though Oracle later withdrew from the project). Additionally, Lower Mount Bethel Township (Northampton County) signed confidentiality agreements with Talen Energy Supply.
Initially, Governor Shapiro supported the 'fast track' program to expedite state approvals for 'critical' projects, including data centers. However, he abruptly reversed his stance on August 18, issuing an executive order that removed data centers from the fast-track list and prohibited state agencies from using NDAs in data center projects. Legal experts like David Cuillier of the Brechner Freedom of Information Project and attorney Chad Schnee expressed strong concerns about the enforceability and democratic implications of municipal NDAs, while Frank Hoegen, an attorney representing data center developers, advised against their use with municipalities.
On a national level, U.S. Sen. Richard Blumenthal (D-CT) launched an investigation in March into the use of NDAs by tech companies and data center owners, stating that communities need factual information to evaluate project impacts on energy and water resources. The investigation is ongoing.