Senate rejects amendment that would ban NDAs for data-center negotiations; debate centered on transparency vs. economic development

Senators on April 25 debated an amendment (A41) by Sen. MayQuaid that would have barred municipalities from entering nondisclosure agreements (NDAs) related to data-center development and required public disclosure of project existence during local consideration.

Supporters said the amendment was intended to protect residents’ ability to weigh in on large-scale data-center projects after multiple local examples where the existence of negotiated projects was not public during early acquisition or negotiation steps. "Residents across our state deserve the opportunity to be involved and make their voices heard," MayQuaid said, citing communities where projects were negotiated under code names.

Opponents argued NDAs are a common part of commercial negotiations — for example, to protect financial offers or proprietary information while parties explore a deal — and warned a categorical ban could chill economic development, particularly for smaller municipalities that rely on outside financial professionals. Several senators urged more targeted fixes, such as clearer timelines for when the public would be notified, rather than a total prohibition. The amendment was put to a roll-call and not adopted.

Why it matters: data-center projects are capital-intensive and have local land-use implications. The debate reflects a broader tension between protecting confidential commercial negotiations and ensuring public transparency and local public input in land-use decisions.

What’s next: proponents said the issue warrants further work to craft targeted rules for public notice and stripped-down NDAs that protect trade secrets while ensuring public notice of a project’s existence.

Provenance (selected): the amendment was introduced and debated on the floor beginning with the sponsor’s floor remarks and a roll-call recorded later in the session.