How data center developers won secrecy pledges from Oklahoma officials
Data center developers in Oklahoma have secured confidentiality agreements from local officials, leading to secrecy around projects and public backlash. These non-disclosure agreements (NDAs) have allowed cities like Sand Springs, Claremore, and Coweta to annex land and approve projects with limited public input, sparking opposition groups and lawsuits. A state lawmaker's attempt to ban such NDAs failed, as officials feared disrupting business development.
The Frontier reports on how data center developers in Oklahoma have utilized secrecy pledges from local officials, leading to public outcry and a lack of transparency in project approvals. Confidentiality agreements, sometimes requiring officials to keep their very existence secret, have been signed by leaders in multiple cities including Sand Springs, Coweta, and Claremore, as well as Wagoner County. These agreements often allow developers to work behind the scenes, brief individual public officials to avoid open meeting laws, and even contain clauses allowing companies to sue cities for enforcement.
In Sand Springs, residents like Kyle Schmidt discovered Google's Project Spring data center plans only after the city annexed 827 acres and approved the project under an NDA. Similar scenarios unfolded in Claremore with Beale Infrastructure's Project Mustang and in Coweta with Beale's Project Atlas, where officials signed NDAs before public disclosure or votes. In Coweta, public opposition led to the planning commission voting against the development plan, causing Beale to abandon the project and triggering a police inquiry into city officials' handling of the matter.
Efforts to reform these practices have met resistance; a bill introduced by State Rep. Jim Shaw to ban such NDAs for public officials died in committee, reportedly due to fears of deterring business. Legal challenges against the City of Sand Springs and landowners, alleging illegal annexation, are ongoing. While developers like Beale Infrastructure state NDAs are standard for economic development, they acknowledge they can hinder community communication, and Google has made design changes to address concerns in Sand Springs. Residents across the state are forming opposition groups and initiating recall petitions, highlighting a growing public demand for greater transparency in data center development.