Democrats Find a Crack in the Tech Industry's NDA Armor

Virginia Governor Abigail Spanberger has enacted Executive Order 22, a sweeping Data Center Accountability Framework designed to enhance transparency in data center developments by targeting non-disclosure agreements (NDAs). This move is a direct response to growing concerns over the industry's secrecy regarding noise, water, and power consumption.

The executive order immediately halts state employee NDAs and lays groundwork for future legislation to ban confidentiality agreements for local and regional authorities. Following this directive, the Western Virginia Regional Industrial Facility Authority (WVRIFA) publicly confirmed that Clearview Dynamics is evaluating a 111-acre site at Wood Haven Technology Park in Roanoke County for a hyperscale data center. The WVRIFA also disclosed that the Western Virginia Water Authority would supply the facility from the Spring Hollow Reservoir, with Clearview Dynamics responsible for all utility overhaul costs.

The development has ignited local political conflict, particularly within the Roanoke City Council, which previously passed an ordinance to prevent industrial surprises within city limits but is also financially invested in the Wood Haven property. Vice Mayor Terry McGuire and Councilman Phazhon Nash have actively pushed for transparency, leading to internal city hall disputes and a reprimand for their public confrontations. Activists and protesters are intensifying their opposition, awaiting further developments on the project's due diligence, which is expected to run through March 2027.

Governor Spanberger's actions align with federal efforts, including U.S. Senator Mark Warner's proposed Data Center Tax Accountability and Disclosure Act, which seeks to deny tax benefits to developers who do not disclose resource consumption. The Wood Haven project is now seen as a critical test case for data center transparency in Virginia, with potential implications for future developments across the nation.