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AI data centers, explained: Why do tech companies request NDAs? What's a moratorium?
The pause follows backlash over a secret NDA as at least 300 cities, towns and counties weigh power, water and tax impacts.
- On Sept. 14, the Salem City Council banned nondisclosure agreements for data center projects and approved a four-month pause on construction, halting the Verrus project.
- Residents expressed frustration after learning officials negotiated the Verrus deal for nine months in private, with council member Vanessa Nordyke admitting she was unaware of the agreement.
- Eric Bonds, a University of Mary Washington sociology associate professor, warns that NDAs "may be used to improperly and even illegally prevent disclosure of information mandated by and open records laws."
- Pennsylvania Gov. Josh Shapiro similarly banned data center NDAs via executive order on Aug. 18, while at least 300 municipalities nationwide have paused approvals to assess infrastructure impacts.
- Demand for data centers has surged as AI usage grows, with typical facilities consuming electricity equivalent to 100,000 households annually, straining local utility capacities.
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27 Articles
27 Articles
AI data centers, explained: Why do tech companies request NDAs? What's a moratorium?
AI data centers explained: As people increasingly use artificial intelligence for daily online activities, data center demand has grown to house the thousands of computers and other equipment that facilitate those tasks.
·Florida, United States
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