How Tech Billionaires are Using NDAs to Hide Data Center Deals
Data Center Deals are concealed with NDAs to prevent open governance.
Secret decisions that are kept from the public until the deals are done.
Credit: More Perfect Union
QUESTIONS:
1) Are the AI Data Center developers arguing that:
the public overstates the costs of the externalities of the Data Center to the community, or
the US interest in AI should override community concerns, or
they only care about their personal monetary interests?
Gemini Research:
2) What is the legality of using NDAs to conceal project details from communities? This seems anti-transparency and anti-democratic.
Summary of Claims: They are necessary to remain competitive with other states that allow public NDAs and they are a standard way of doing bussiness.
GEMINI RESPONSE:
Yes, this issue centers on major investigative reporting by the Gulf States Newsroom and Type Investigations into how non-disclosure agreements (NDAs) are being used by tech companies and state leadership in Louisiana.
The secrecy surrounding massive tech infrastructure investments in the state—most notably involving Meta and Amazon—has sparked significant legal and political debate.
Key Highlights of the Situation
1. Meta’s $50 Billion Data Center (”Project Hyperion”)
The Deal: Meta (operating through a shell subsidiary, Laidley LLC) pursued a multi-billion dollar AI data center campus in Richland Parish, Louisiana.
The Governor’s Signature: Records revealed that Governor Jeff Landry personally signed a mutual NDA with Meta’s subsidiary.
The Terms: The agreement bound state leadership from publicly discussing proposed deal terms, tax incentives, financial details, or even the existence of the agreement itself without Meta’s prior written approval. It also required the state to push for protective orders if compelled to release information under public records requests.
2. Amazon’s $12 Billion Expansion
Similar non-disclosure dynamics occurred around Amazon’s planned $12 billion data center footprint in northwest Louisiana, where local and state officials were bound by secrecy clauses while early negotiations and infrastructure plans were being hashed out.
3. Widespread Use of Internal NDAs
Beyond corporate NDAs, investigations revealed that over 120 state employees and dozens of lawmakers (including a majority of the Louisiana State Senate) signed internal confidentiality agreements with the Governor’s office or Louisiana Economic Development (LED).
These internal NDAs forbid state staff from sharing information without written consent from the governor, even after leaving state employment.
Why It’s Controversial
Transparency & Public Records: Open-government advocates and legal experts argue these agreements stretch traditional “trade secret” protections too far. Critics argue that when public incentives, water rights, and massive utility commitments (such as power deals with Entergy) are involved, using NDAs prevents citizens and local communities from having input before projects are finalized.
Chilling Speech: First Amendment scholars have raised concerns that penalizing state workers or local representatives for speaking out creates a “gag order” culture, turning standard government transparency laws on their head.
The State’s Defense: The governor’s office and economic development officials argue that NDAs are standard business tools required to remain competitive with other states when negotiating with trillion-dollar tech corporations. They contend confidentiality is necessary to protect trade secrets and sensitive strategy during high-stakes economic deals.
Selected YouTube Comments:
The comments indicate that the Data Center developers are defying a large backlash.
You can’t get a permit for your shed you want to build but they can build and fund a whole secret data centre without anyone knowing?
You were robbed of any input because they knew you’d be against it.
So you’re telling me that a company can make a shady deal with a politician and then legally cannot talk about said deal. That doesn’t sound corrupt at all!
It’s interesting that the only people who want data centers in their area are the ones in charge. The ones who are supposed to be the voices of the people they represent.
Public officials should not have the authority to sign an NDA.
The corruption is off the charts
It WILL affect your health. It WILL affect your property. It WILL affect your water. It HAS increased your electric bill. Yes, you ARE paying for it.
“If you wanna keep harping on about NDAs, then we’re done.” Yes, we are done.
Trickle down corruption.
All this corruption is gonna keep happening and its gonna get worse because this country is not standing up to this government its gonna take EVERYBODY to stand up not just a few people so until that happens nothing is gonna change and we will eventually lose everything our rights are freedom people are losing their homes and land and they dont have a problem stealing if there is no consequences. The government is like the school bully there going to keep doing it until we stand up!!!! I dont know how far this needs to go before people realize that whats going on is serious and if people just stay quiet hoping someone will come save the day its gonna be to late and we and the younger generations will suffer the consequences of inaction!!!
Time to throw the tea in the harbor
And now the class war becomes fully evident for all to see. Not left vs right. UP vs DOWN. If you’re not a billionaire, we’re on the same team.
Shut ‘em Down.
Every single one of these corporations, lobbyists, politicians, etc need to go to PRISON… NOW.
Oh Big Brother thought they could buy off the city councils or county councils but when it gets a little more intrusive all hell is going break loose and these data centers will be run out of towns.
Here in Michigan the city of Saline voted 2 separate times no to build a Data center and the governor had a closed door vote with a little bribery money and it miraculously passed…
ANY representative that hides from their people like this should be physically forced to resign. Dragged into the streets if necessary.