Data center developers are pushing Pa. government officials to sign secrecy agreements. At least some are saying yes.
Data center developers in Pennsylvania are increasingly requiring local government officials to sign non-disclosure agreements (NDAs) before discussing projects, raising concerns among First Amendment advocates and lawmakers about transparency. While some officials refuse, others have signed NDAs with companies like Talen Energy and Amazon. In response, Pennsylvania lawmakers have introduced bills to curb the practice, and Governor Shapiro has issued an Executive Order prohibiting NDAs for data center projects moving forward.
Data center developers are increasingly requiring Pennsylvania government officials to sign non-disclosure agreements (NDAs) as a prerequisite to discussing proposed projects, a practice that has drawn criticism from transparency advocates and some lawmakers.
Spotlight PA's investigation revealed at least eight NDAs signed by township, county, and state administration officials. Critics, including Melissa Melewsky from the Pennsylvania NewsMedia Association, argue that these agreements impede the public's right to information about decisions made by elected officials regarding public business, such as zoning and permitting. While some officials, like Anthony Township Supervisor Craig High, refused to sign, others, including Schuylkill County Board of Commissioners chair Larry Padora, signed under the advice that state transparency laws would render the NDAs unenforceable. Padora confirmed that Amazon was the confidential end-user for a project in Kline Township, which he did not disclose until after the property purchase was public.
In response to growing concerns, Pennsylvania lawmakers have introduced bills to prohibit or disincentivize the use of NDAs by data center developers. State Sen. Tracy Pennycuick (R-Montgomery) proposed banning public agencies from signing such agreements, citing a proposed 1.4 million-square-foot data center in Limerick Township where the end-user remains undisclosed. State Rep. Joe Ciresi (D-Montgomery) introduced a bill to amend a tax exemption for data centers, making it applicable only to those that pledge not to use NDAs. While Ciresi's bill passed the state House, both legislative efforts are currently awaiting Senate consideration.
The Data Center Coalition, represented by Dan Diorio, acknowledges the need for regulation but argues that NDAs protect competitive interests and land prices. However, Governor Shapiro's administration has taken decisive action, issuing an Executive Order that explicitly prohibits the use of NDAs for data center projects moving forward, mandating compliance with his GRID (Governor's Responsible Infrastructure Development) principles.