NDAs are hiding data center deals, drawing ire from locals — and attention from lawmakers

**Lawmakers and Residents Challenge Secrecy Surrounding Data Center Deals**

Rapides Parish, Louisiana — Nondisclosure agreements (NDAs) used in negotiations for data center projects are drawing criticism from residents and lawmakers across the country, raising concerns about transparency and public trust in local government.

In Boyce, Louisiana, a small town in Rapides Parish, construction has begun on a 300-acre data center site developed by Dallas-based Applied Digital Corp. The project, known as Delta Forge 1, is expected to draw 300 megawatts of electricity in its first phase—enough to power approximately 200,000 homes during peak summer demand, according to the U.S. Energy Information Administration. The $3.6 billion campus is slated to begin initial operations by mid-2027.

Residents, including local beekeeper Foster Hensel, have expressed concerns about potential impacts on utility costs and the environment. Hensel and others question why details about the project were not disclosed earlier. "There's something wrong with that," Hensel said, referencing the lack of transparency.

The negotiations between Applied Digital and local officials were conducted under NDAs, a practice experts say is common in data center deals nationwide. According to a study by Eric Bonds, an environmental sociologist at the University of Mary Washington, NDAs were used in at least 25 of 31 data center projects surveyed in Virginia last year. Bonds described the practice as "standard."

Critics argue that NDAs give developers an advantage by limiting public access to information. David Cuillier, director of the Brechner Freedom of Information Project at the University of Florida, said the agreements allow companies to control information to maintain a competitive edge. "Information is power, and these folks are powerful," Cuillier said.

In Louisiana, records obtained by the Gulf States Newsroom and Type Investigations revealed at least 54 NDAs signed by elected officials since Governor Jeff Landry took office in early 2024. These include agreements related to data centers in Rapides Parish and other projects. Cuillier noted that Louisiana ranks among the more secretive states in terms of government transparency.

The Boyce project was negotiated under code names "Project Lightning" and "Project Pixel." At least five state senators, the Rapides Parish assessor, and every member of the England Economic and Industrial Development District (EEIDD), the local board overseeing the deal, signed NDAs. The EEIDD approved the project in April during a public meeting with minimal discussion, and the state announced the deal in May.

Residents voiced their frustrations at a June town hall meeting in Boyce. Attendees demanded details about the project's impact on water, power, and the environment. When officials acknowledged that an environmental study would not be released due to NDAs, the crowd responded with jeers. Applied Digital stated the facility would use a "closed-loop system" to reduce water usage.

Shannon McManus, a former sheriff's deputy and local resident, said rumors about the project circulated late last year, but residents struggled to obtain information. "The information should have been available before decisions were made, not after," McManus said.

Lawmakers in several states, including Michigan, Oklahoma, Kentucky, and Ohio, have introduced bills to ban NDAs for data center projects. In Pennsylvania, Governor Josh Shapiro recently prohibited their use on data center deals by state agencies.

Proponents of NDAs argue they protect corporate secrets and allow for more effective negotiations. However, the growing backlash highlights tensions between economic development and public transparency. As data center projects expand, the debate over secrecy in government dealings is likely to continue.