Many talks between data center developers and local governments are wrapped in secrecy behind non-disclosure agreements — residents question the need for NDAs, but developers argue it’s important to avoid ‘running afoul of insider trading rules’

Researchers from the University of Mary Washington in Virginia found that of the 31 localities with an existing, approved, or proposed data center, 25 of them have non-disclosure agreements (NDAs) that make it difficult, if not impossible, for their citizens to find information about these projects. According to NPR, these NDAs have left the questions of many residents unanswered, making them feel left out of the decision process and increasing their distrust of their leaders.

Many officials defended signing these secrecy agreements, saying that this is standard practice among tech companies, and that they could lose the potential business and revenue that data center projects could bring to their jurisdiction if they fail to sign the NDA. Louisiana Economic Development Secretary Susan Bourgeois even told the publications that NDAs are “fundamental for economic development” as they allow the state to compete with other states and territories for the data centers’ business. “The last thing that they want to have happened in the beginning of the discussion, or in any part of the discussion, is for their information that they’re sharing to be disclosed publicly. So, without NDAs, our work, frankly, just doesn’t happen,” the agency secretary said to NPR. She also added, “The irony is that we, we use NDAs not to be more cloaked, we use NDAs to be more forthcoming.”

NDAs aren’t only limited to Louisiana, as other towns across the U.S. have signed these secrecy agreements even before they started talks with potential data center projects in their regions. Some Wisconsin citizens raised a similar issue in early 2026, when at least four municipalities reportedly signed NDAs with Microsoft and Meta as they negotiated with the two companies. These confidentiality agreements are some of the things that drive the heated debate between elected officials and ordinary citizens, with the latter often feeling betrayed and sold out by the former when they belatedly find out that a data center will be put up in their community.

However, West Feliciana Parish proved that it could get a data center deal without keeping its details top secret. Parish President Kenny Havard said that economic development does not require NDAs. “I don’t think NDAs are necessary unless they’re going to bring you in a room and share some proprietary information. When you’re talking about land sales, tax incentives, those sorts of things that affect the citizens, it should be out in the open. It should be transparent,” Havard told the outlet. He also said, “We’re proud that we did it without having to sign NDAs. And I think it just shows that you can do these projects without keeping the people in the dark.”