Pa. Senate committee advances bill to prohibit NDAs in data center development

Harrisburg, Pa. — New legislation sponsored by Sen. Tracy Pennycuick (R-Berks/Montgomery) was unanimously approved by the Senate Communications and Technology Committee, which she chairs, on Sept. 29.

Senate Bill 1408, if passed, will prohibit the use of non-disclosure agreements (NDAs) between data center developers and local governments and state agencies.

Data center development is increasing rapidly throughout the U.S. Though considered a significant part of the modern economy, regulations are being proposed to let residents decide whether or not they want data centers in their communities.

“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,” said Pennycuick. “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.”

“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,” she continued.

The bill is part of a package of legislation to help local communities address concerns about large data center development in their neighborhoods.