HARRISBURG, PA — As artificial intelligence and cloud computing infrastructure expand rapidly across Pennsylvania, state lawmakers are pushing back against the widespread practice of data center developers requiring local governments and economic development agencies to sign non-disclosure agreements (NDAs). These agreements have increasingly left municipal officials unable to disclose details about massive energy- and water-intensive projects to residents prior to local planning and zoning approvals.
State lawmakers have introduced several legislative measures to address these transparency concerns. House Bill 2359, introduced by Rep. Joe Ciresi (D-Montgomery), mandates that large-scale commercial data centers refrain from entering NDAs with public agencies, requiring developers to submit a community protection plan and hold pre-construction public consultations to qualify for state tax preferences. Another measure, House Bill 2650, passed the Pennsylvania House in a bipartisan vote to incorporate transparency requirements directly into Governor Josh Shapiro’s Governor’s Responsible Infrastructure Development (GRID) framework, forcing developers seeking state financial support to demonstrate ongoing compliance and public engagement. In the Senate, Senate Bill 1408, introduced by Sen. Tracy Pennycuick (R-Montgomery), explicitly seeks to ban state and local government agencies from entering into NDAs regarding the location, construction, or environmental footprint of data centers, declaring any such executed agreements null and void.
While tech firms like Microsoft have voluntarily pledged to cease using municipal NDAs for site selection, broader industry representatives argue that non-disclosure terms remain standard commercial practice to protect proprietary technology, supply chain details, and competitive land acquisitions during early site evaluation phases. Proponents of the transparency legislation contend that because high-density data centers directly affect local utility rates and water supplies, public input and municipal accountability must take precedence over private corporate secrecy, leaving both legislative packages awaiting further consideration in the Pennsylvania Senate.
