Landsman, Barrett, Raskin Introduce Bipartisan Bill to Ban Data Center NDAs

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WARREN COUNTY, OH – Congressman Greg Landsman (D-OH-01), Congressman Tom Barrett (R-MI-07), and Congressman Jamie Raskin (D-MD-08) introduced bipartisan legislation to ensure artificial intelligence (AI) data center plans are negotiated in public, not behind closed doors.

In several states, reports show there has been extensive use of non-disclosure agreements (NDAs) to hide details of proposed data center projects from communities. In some cases, public officials have signed NDAs, preventing them from warning residents and businesses about the potentials impacts of these projects.

Representatives Landsman, Barrett, and Raskin introduced the bipartisan No Secrets for Data Centers Act to dramatically increase transparency over these plans by making sure local officials can share reasonable details about a proposed data center in their town.

“Big Tech needs to be transparent about these deals, not force local officials to sign NDAs and keep secrets from their communities. That means no more NDAs. Transparency can’t just be a promise – it needs to be law," Landsman expressed.

“Local residents must have the final say about data centers in their communities, and that means they need to know all the facts so they can make an informed decision. The recent surge in NDAs is keeping people in the dark about how a data center might affect their land, their water, and their electric bills — until it’s too late. Blocking these confidentiality agreements is an important step in our fight to increase transparency and protect citizens’ right to decide what is best for their community," added Barrett.

The No Secrets for Data Centers Act would:

  • Void NDAs signed by government officials that hide details of a data center project.
  • Stop Big Tech from accepting government subsidies if it’s conditional on keeping details confidential, excluding normal filings that could be reasonably considered trade secrets.

Brad Carson, President of Americans for Responsible Innovation, noted, “Communities across the country are being asked to bear the costs of data center projects without having a seat at the negotiating table. Nondisclosure agreements allow developers and public officials to hide the terms of siting and tax abatement agreements, keeping residents in the dark about what benefits – if any – they will get. The No Secrets for Data Centers Act is a critical step toward the transparency Americans need to decide what is best for their neighborhoods.”

“The American people have a right to know how data centers being built in their communities will affect local utilities, the local environment, and the local economy, and who will be responsible if and when things go wrong. Yet throughout the country, local officials are blocked from discussing these projects with their constituents because of the Non-Disclosure Agreements Big Tech companies are imposing to cloak these projects in secrecy. I’m proud to introduce this bill with Rep. Landsman to ban these corporate gag orders and make sure no public official is stifled in their most fundamental duty: answering to the people they represent and protecting their interests," added Raskin.

Read the the full bill text here.

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