An investigation reveals that most negotiations between data center developers and municipal authorities are shielded by strict non-disclosure agreements to avoid insider trading allegations.

Researchers from the University of Mary Washington in Virginia found that of the 31 localities with an existing, approved, or proposed data center, 25 have non-disclosure agreements (NDAs) that make it difficult, if not impossible, for residents to access information about these projects. According to NPR, these confidentiality agreements have left many citizens’ questions unanswered, fostering a sense of exclusion from the decision-making process and eroding trust in local leadership.

Many officials defend signing such secrecy agreements, arguing that they are standard practice within the technology sector and essential to securing potential business and revenue. Louisiana Economic Development Secretary Susan Bourgeois told NPR that NDAs are “fundamental for economic development,” enabling the state to compete effectively with other states and territories for data center investments. “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, “The irony is that we, we use NDAs not to be more cloaked, we use NDAs to be more forthcoming.”

The use of NDAs extends well beyond Louisiana. Several municipalities across the United States have signed similar confidentiality agreements even before formal discussions began. In early 2026, Wisconsin residents raised concerns after at least four local governments reportedly executed NDAs with Microsoft and Meta during negotiations. These secrecy pacts have become a focal point of heated debate between elected officials and everyday citizens, who frequently report feeling betrayed or sold out when they discover plans for new data centers in their communities only after deals are advanced.

West Feliciana Parish demonstrated that substantial data center agreements can be secured without resorting to strict confidentiality measures. Parish President Kenny Havard argued that economic development does not inherently 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 reporters. He emphasized the parish’s approach: “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.”