Lawsuit challenges secrecy in Arkansas economic deals; Data center moratorium debated in Pulaski County
A lawsuit has been filed in Arkansas against Fayetteville regarding a nondisclosure agreement for a drone manufacturer, highlighting increasing scrutiny of secrecy surrounding economic deals including data centers. Residents in central Arkansas are actively opposing planned data center projects due to lack of transparency, environmental concerns, and utility costs, leading the Pulaski County Quorum Court to delay a vote on a data center moratorium while Little Rock approved new requirements.
A lawsuit has been filed against the City of Fayetteville, Arkansas, over a nondisclosure agreement related to a military drone manufacturer. The legal action highlights growing scrutiny in the state regarding the secrecy surrounding economic development deals, including several planned data center projects.
Retired University of Arkansas professor Ted Swedenburg filed the lawsuit in Washington County Circuit Court, alleging Fayetteville failed to comply with an Arkansas Freedom of Information Act request for the nondisclosure agreement. The city maintains it responds to such requests in accordance with state law.
This lawsuit comes amidst increasing public frustration in Central Arkansas over a lack of transparency concerning multiple data center projects. Residents are raising concerns about potential environmental impacts and utility costs. Critics have actively participated in recent board and quorum court meetings to voice their opposition.
In response to these concerns, the Little Rock Board of Directors recently approved additional requirements for data centers, proposed by Mayor Frank Scott. These new restrictions will apply to projects like a planned Google data center at the Port of Little Rock and an AVAIO Digital facility in unincorporated south Pulaski County. Meanwhile, the Pulaski County Quorum Court's agenda committee delayed considering a temporary moratorium on data center projects, with members like Justice Steven Person and Justice Tina Ward seeking more independent expert input. Fayetteville officials are also considering adding requirements, such as conditional use permits and reporting, for future data centers within city limits.