Multiple tech companies are requiring local government officials in Louisiana and at least six other states to sign non-disclosure agreements before discussing plans for large-scale data center facilities, a practice critics say undermines democratic accountability while supporters argue protects legitimate business interests.
The confidentiality requirements have emerged as data center construction has accelerated across the country, with technology firms seeking favorable tax incentives, streamlined permitting, and access to reliable power infrastructure. Local officials in several parishes—the equivalent of counties—have agreed to the NDAs as part of negotiations that could bring significant capital investment to their communities.
Louisiana Governor Jeff Landry's administration has declined to confirm whether state-level agreements include similar confidentiality provisions. The governor's office referred questions to individual parishes handling their own development deals.
What the Left Is Saying
Democratic lawmakers and good-government advocates argue that secrecy in data center negotiations deprives residents of information needed to evaluate decisions affecting their communities. State Representative Ted James, a Baton Rouge Democrat, said NDAs prevent constituents from knowing what tax breaks or infrastructure commitments local officials are making on their behalf.
The Sierra Club and other environmental groups have raised concerns that confidential negotiations also shield details about energy consumption plans, water usage, and potential pollution risks. Without public disclosure, residents cannot weigh in before decisions become final, these groups argue.
Transparency advocates at the Louisiana Center for Law and Civic Education said NDAs create a two-tiered system where wealthy corporations receive private access to government officials while ordinary citizens must rely on whatever information officials choose to release voluntarily.
What the Right Is Saying
Conservative commentators and business groups say NDA requirements reflect standard commercial practice and protect companies from competitors who might use negotiations as intelligence-gathering opportunities. The Louisiana Association of Business and Industry has defended confidential deal-making as essential for attracting major investments in a competitive national market.
Republican state legislators have largely avoided direct criticism of the practice, with some arguing that local governments already face sufficient regulatory hurdles without adding public disclosure requirements that could chase away potential employers.
Former Republican Governor Buddy Roemer, who served before Louisiana's current boom in data center recruitment, said confidentiality agreements were uncommon in his era but acknowledged the competitive landscape has changed dramatically. He argued that aggressive corporate secrecy may reflect legitimate concerns about unfair advantage rather than any intent to hide harmful activities from the public.
What the Numbers Show
Louisiana has approved at least 23 data center development agreements since 2022, according to state economic development records obtained through separate public information requests unrelated to individual NDA discussions. Combined capital investment for disclosed projects exceeds $4.7 billion, though some project values remain redacted in publicly available documents.
Nationwide, data center construction reached a record $37.6 billion in 2025, up from $21.2 billion in 2023, according to commercial real estate firm CBRE. The South region, including Louisiana, accounted for 34 percent of new construction starts last year.
A 2025 survey by the National Conference of State Legislatures found that 17 states have enacted or expanded data center tax incentive programs since 2022, with most allowing some degree of confidentiality regarding individual deal terms.
The Bottom Line
The use of non-disclosure agreements in data center negotiations highlights an ongoing tension between government transparency and economic development strategy. Tech companies argue they need protection against competitive espionage, while transparency advocates contend residents deserve to know what local officials are agreeing to on their behalf.
Louisiana's legislature could face pressure to require disclosure of at least general parameters for major incentive packages, similar to laws in Georgia and Virginia that mandate public reporting without revealing proprietary business details. Until such rules exist, individual parishes retain discretion over whether to sign NDAs with companies seeking to build data facilities.