The AI Boom is here; the secret deals shouldn’t be
The opinion article criticizes nondisclosure agreements that allow data center developers and local governments to negotiate projects without publicly disclosing their water use, electricity demand or tax incentives. It cites examples in Bessemer, Alabama, Virginia, Oregon and Minnesota, and discusses proposed policy responses including moratoriums, disclosure requirements and rules making data centers pay for grid upgrades.
The article argues that local governments are increasingly using secrecy agreements while negotiating major artificial intelligence and data center projects. It cites a proposed $14.5 billion facility in Bessemer, Alabama, a nondisclosure agreement in Salem, Oregon, and a project in Pine Island, Minnesota, where residents learned of development plans only after officials had known about them for years. A University of Mary Washington study found nondisclosure agreements in 25 of 31 Virginia localities examined.
The piece says the secrecy can conceal projected electricity and water consumption, tax incentives and the identities of developers. It notes that Amazon kept water-use information confidential in an agreement with Spotsylvania County, while Microsoft and Amazon Web Services have said they are ending or no longer using such agreements with government agencies. The article also highlights data center moratoriums and policy responses in Ohio, California and Pima County, Arizona, and calls for national disclosure requirements and rules requiring developers to cover infrastructure costs.