Data center NDAs are drawing scrutiny across the United States, as residents question why negotiations between developers and local governments so often happen behind closed doors. Researchers at the University of Mary Washington in Virginia examined 31 localities with an existing, approved, or proposed data center and found that 25 of them had signed non-disclosure agreements, making it difficult, and sometimes impossible, for the public to learn details about the projects.
The secrecy has left many residents feeling shut out of the decision-making process. With basic questions going unanswered, distrust toward local officials has grown in communities weighing large data center developments.
Why Officials Defend the Secrecy
Many local leaders argue that non-disclosure agreements are standard practice for tech companies and that refusing to sign them could cost their jurisdictions valuable business and tax revenue. Louisiana Economic Development Secretary Susan Bourgeois described NDAs as “fundamental for economic development,” saying they allow the state to compete with other states and territories for data center projects.
“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,” Bourgeois said. She added a notable twist: “The irony is that we, we use NDAs not to be more cloaked, we use NDAs to be more forthcoming.”
A Nationwide Pattern of Confidentiality
The practice extends well beyond Louisiana. Some towns have signed confidentiality agreements even before formal talks began with prospective data center operators. In Wisconsin, residents raised similar concerns in early 2026, when at least four municipalities reportedly signed NDAs with Microsoft and Meta during negotiations. These agreements have fueled heated debate between elected officials and constituents, with residents often feeling blindsided when they discover a data center is coming to their community.
Proof That Transparency Is Possible
Not every deal requires secrecy. West Feliciana Parish secured a data center project without keeping its terms hidden. Parish President Kenny Havard said economic development does not depend on 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 said. He added, “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.”
Of the 31 localities studied, 25 had NDAs in place, according to the University of Mary Washington research.
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