North Dakota lawmakers debate data center NDAs
North Dakota lawmakers are set to debate a proposed bill that would prohibit public officials from signing certain nondisclosure agreements (NDAs) related to data centers and other industrial projects. The debate is driven by concerns stemming from a data center project near Harwood, where residents claimed they had little prior knowledge of its development. While some officials argue the bill is necessary for transparency, Governor Kelly Armstrong maintains that NDAs cannot supersede the state's open records law.
North Dakota lawmakers are preparing for a special session in Bismarck on Wednesday, September 2nd, with a key debate focusing on a proposed bill to ban public officials from signing certain nondisclosure agreements (NDAs) for data center and industrial projects. The controversy stems from a data center development by Applied Digital near Harwood, where residents in Fargo, West Fargo, and Harwood reported being unaware of the project until shortly before groundbreaking.
State Senator Tim Mathern, D-Fargo, a sponsor of the bill, emphasized the need for transparency, citing the significant impacts such large projects can have on power, water, infrastructure, and taxes. Mathern stated that projects should withstand public scrutiny. However, Governor Kelly Armstrong contested the necessity of a broad ban, arguing that NDAs cannot circumvent North Dakota's open records law. He noted that citizens could request records, and an NDA would not be a legal basis to deny such a request.
Senator Ryan Braunberger, D-Fargo, challenged the Governor, questioning how citizens would know to request records if they were unaware of the discussions due to NDAs. Governor Armstrong expressed concern that a blanket ban might hinder legitimate confidentiality agreements used by state agencies for financial reviews, despite being personally against broad development NDAs. Applied Digital, the company behind the Harwood project, defended its NDA, stating it was used for a brief period to protect competitive advantage during early site selection. Nick Phillips, executive vice president of public affairs, asserted that their agreements are subject to open records. The Greater North Dakota Chamber, TechND, and several economic development groups also testified against the bill, warning it could negatively impact the state's ability to attract projects.