A bipartisan group of lawmakers has introduced new legislation that would ban the use of nondisclosure agreements (NDAs) that prevent government officials from discussing proposed data center projects with the public, amid growing scrutiny of secrecy surrounding the rapid expansion of AI-driven infrastructure across the U.S. The proposed "No Secrets for Data Centers Act," introduced by Representatives Greg Landsman of Ohio, Tom Barrett of Michigan, and Jamie Raskin of Maryland, wants to make sure that plans for data centers are negotiated in the open, rather than behind closed doors. Newsweek has messaged Landsman for comment and is awaiting a response.
The bill comes as communities across the country grapple with proposals for large-scale data centers that can consume vast amounts of electricity and water, while often receiving tax incentives or other public support. In several states, local officials have signed NDAs with developers, limiting what they can disclose to residents about projects under consideration. According to the lawmakers' press release, the legislation would void NDAs signed by government officials that hide details about data center projects.
It would also prevent tech companies from receiving government subsidies if those incentives are tied to keeping project details confidential, except where legitimate trade secrets are involved. "Big Tech needs to be transparent about these deals, not force local officials to sign NDAs and keep secrets from their communities," Landsman said in a statement announcing the bill. "That means no more NDAs.
Transparency can't just be a promise—it needs to be law." Barrett argued that residents should be informed about potential effects on "their land, their water, and their electric bills" before decisions are made. Raskin similarly said communities have a right to know how projects could affect utilities, the environment, and local economies. The federal proposal follows increasing attention on the use of NDAs in data center negotiations.
Multiple states have already entered confidentiality agreements tied to prospective data center developments. Those states include Arizona, Indiana, Louisiana, Pennsylvania, Tennessee, Virginia, and Wisconsin, among others, as communities weighed projects connected to major technology companies and AI infrastructure growth. For example, in Arizona, Tucson’s Project Blue, a proposed data-center development whose planning was kept largely out of public view for about two years under NDAs, led to a backlash that prompted Pima County and Tucson officials to reconsider how such agreements are used.
In Page, Arizona, records later showed that city officials had signed NDAs with the developer months before a proposed 1-gigawatt data center was publicly disclosed, helping fuel community backlash over the project. And Virginia has faced similar concerns: a 2025 review found NDAs in 25 of 31 localities with existing or proposed data centers, with critics arguing that broad confidentiality provisions can limit public understanding of projects’ potential impacts. Supporters of NDAs have argued that confidentiality is needed during site-selection processes, as they can help companies protect commercially sensitive information while they evaluate locations and negotiate the purchase of land.
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