South Bend's mayor prohibits non-disclosure agreements about data centers
South Bend's mayor is moving to prohibit non-disclosure agreements related to future large infrastructure projects, following scrutiny over an NDA connected to Amazon's data center and its wastewater discharge. City council members have also proposed an ordinance to ban NDAs and increase transparency regarding data centers and water use. The mayor's executive order and the proposed ordinance are both aimed at addressing public concerns about secrecy surrounding major developments.
South Bend, Indiana's Mayor James Mueller is taking steps to eliminate non-disclosure agreements (NDAs) for future large infrastructure projects. This move comes after public questions arose regarding an NDA connected to Amazon's data center, which sends its wastewater to the South Bend treatment plant.
According to Councilman Oliver Davis, he and other council members were unaware of Amazon's use of the city's wastewater treatment facility. In response, Davis and Councilwoman Sherry Bolden-Simpson have proposed an ordinance that would prohibit future NDAs across city government, mandate greater transparency for data centers and their water consumption, and include a $2,500 penalty for violations. The ordinance also calls for a review of past secrecy agreements.
City records show Amazon used approximately 30 million gallons of the treatment plant's capacity between August of last year and July, making it the 11th-largest user. The original NDA between Amazon and the city's public works team was signed in December 2023. Mayor Mueller has stated that the city council lacks the legal authority to impose their proposed ordinance. The ordinance's first reading has been rescheduled to September 28th, with uncertainty about whether the Mayor's executive order will take precedence.