NDAs are hiding data center deals, drawing ire from locals — and attention from lawmakers - Oregon Public Broadcasting
A data center project by Applied Digital in Boyce, Louisiana, is facing local opposition due to nondisclosure agreements (NDAs) that shielded negotiations from the public. While the project is underway, the widespread use of NDAs in data center deals across the country is drawing attention from lawmakers, with Pennsylvania banning their use by state agencies and other states proposing similar legislation. Residents are also concerned about the project's impact on local environment, water and power resources.
In Boyce, Louisiana, a small town in Rapides Parish, construction has commenced on a 300-acre data center site by Dallas-based Applied Digital Corp. This project, code-named "Project Lightning" and "Project Pixel" during negotiations, is now named Delta Forge 1 and is expected to be a $3.6 billion campus drawing 300 megawatts in its first phase. Local residents, including beekeeper Foster Hensel and former sheriff's deputy Shannon McManus, express concerns about increased utility bills, environmental impact, and a pervasive lack of transparency surrounding the deal.
Nondisclosure agreements (NDAs) signed by state senators, the Rapides Parish assessor, and members of the England Economic and Industrial Development District (EEIDD) kept project details hidden from the public until after the deal was approved in April. This secrecy fueled anger at a June town hall, where residents like Robert Maddox and Robert McLane criticized elected officials for not representing their constituents and demanded information on water and power impacts. Officials and the company defended the NDAs, citing competitive economic development and securities law for publicly traded companies. Applied Digital CEO Wes Cummins acknowledged the "sneaky" perception but stated the company defers to local officials on public engagement.
The use of NDAs in data center negotiations is a national trend, according to experts like Eric Bonds from the University of Mary Washington and David Cuillier of the Brechner Freedom of Information Project. This practice allows developers an advantage while frustrating the public. In response, several states, including Michigan, Oklahoma, Kentucky, and Ohio, have seen bills introduced to ban NDAs for data center projects. Pennsylvania Governor Josh Shapiro recently banned their use by agencies under his oversight, signaling a growing legislative push for greater transparency in these large-scale infrastructure deals. In contrast, West Feliciana Parish in Louisiana chose not to use NDAs for a separate $10 billion data center project, providing full transparency to its residents.