MADISON, WI…Legislation authored by Senator André Jacque (New Franken) to ban the use of non-disclosure agreements (NDAs) to conceal data center development plans from local communities passed the Senate Committee on Utilities, Technology and Tourism today on a bipartisan 4-1 vote.
With the rapid growth of artificial intelligence and other data-intensive technologies, tech companies have dramatically expanded efforts to build large data centers across the country, including in Wisconsin. Unfortunately, many companies are using NDAs to hide development plans from the public, giving communities little time to react or evaluate their potential impact.
“When a large data center is built, it reshapes the community and carries real fiscal consequences for taxpayers,” said Jacque. “Residents are concerned about noise levels, environmental impacts and infrastructure costs, and how the project will affect the quality of life.”
Senate Bill 969 would prohibit companies and local governments from using NDAs or other secrecy deals to conceal information about data center projects from the public or from local government officials. The bill also prevents local governments from approving a data center if those requirements are violated. By increasing transparency, local communities will have more time to review and weigh the effects of proposed projects.
“This legislation simply ensures that projects seeking local approval do so in the open so that we know what we are signing up for before we put pen to paper, not after,” said Jacque. “If a project is good for the community, it should be able to survive a little daylight.”
