Microsoft drops NDAs for data centers as critics seek transparency

Microsoft has announced it will cease using nondisclosure agreements (NDAs) for its data center proposals, a decision lauded by open government advocates. This move addresses growing criticism, particularly in Wisconsin, regarding the lack of transparency in data center development processes. Wisconsin state Rep. Clint Moses, R-Menomonie, whose city previously signed an NDA for a Microsoft data center project, had introduced a bill to ban such agreements statewide, though it stalled in the Legislature. The announcement follows significant public backlash against data center proposals across Wisconsin. While Microsoft had avoided NDAs in Mount Pleasant and Caledonia, it had one in Kenosha, which it now plans to terminate. Critics, including Midwest Environmental Advocates, view Microsoft's change as a response to community pressure, while Sheboygan Falls Mayor Randy Meyer noted municipalities often feel pressured to sign NDAs for economic development. The issue of secrecy extends beyond Microsoft, with Wisconsin Watch reporting at least five Wisconsin communities have signed data center NDAs. This includes Beaver Dam, where Meta is constructing a data center, and Port Washington, where Vantage Data Centers, Oracle, and OpenAI are building a large facility. The Madison suburb of DeForest also faced scrutiny for its handling of a proposed QTS Data Centers project before it was dropped. Opponents like Blaine Halverson from Menomonie remain skeptical, calling for full upfront transparency, not just the absence of NDAs.