Pennycuick Bill Prohibiting Data Centers from Shielding Information from the Public Approved by Committee

HARRISBURG - Legislation sponsored by Sen. Tracy Pennycuick (R-24) to prohibit the use of non-disclosure agreements (NDAs) in data center development was unanimously approved today by the Senate Communications and Technology Committee, which she chairs.

Senate Bill 1408 would prohibit such NDAs between data centers and local governments and state agencies.

Data center development, especially in Pennsylvania, is increasing rapidly. There is broad recognition that data centers are an important part of the modern economy. However, data center development should not be forced into every community where residents have made clear they do not support it.

"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 said.

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

CONTACT: Matthew Szuchyt