Pennycuick Introduces Bill to Prohibit NDAs for Data Center Development

HARRISBURG - Today, Sen. Tracy Pennycuick (R-24) introduced legislation prohibiting state and local government agencies from entering into non-disclosure agreements (NDAs) for data center development.

Data center development, especially in Pennsylvania, is increasing rapidly. There is broad recognition that data centers are an important part of the modern economy. However, data center development should not be forced into every community where residents have made clear they do not support it.

A growing practice among data center developers is to require local governments to sign non-disclosure agreements regarding proposed data center projects, leaving the voices of residents out of the discussion. Local officials have a responsibility to communicate openly and honestly with community residents, especially regarding the development of data centers. Signing a non-disclosure agreement restricts this duty.

"Community residents deserve to have a voice, and entering into non-disclosure agreements will prohibit dialogue about this important issue," said Pennycuick. "By prohibiting state and local government agencies from entering into non-disclosure agreements we can ensure that key decisions about the future of local communities are made with transparency, and that the public is able to make their voices heard on the important issues facing their community."

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