Wisconsin lawmakers debate ban on data center secrecy deals

• Wisconsin lawmakers are considering a bill to ban non-disclosure agreements for data center projects.
• The legislation aims to prevent developers and officials from concealing project details from the public.
• Supporters argue the bill increases transparency, while some business groups oppose it.
• The bill would also prohibit local governments from approving projects that used such secrecy agreements.

MADISON – Data center developers and government leaders would be barred from concealing key information about their projects from Wisconsin residents under legislation moving through the state Capitol this week.

State lawmakers on Tuesday heard public testimony on a slate of bills aimed at governing the boom of data center construction in the state. One bill would ban developers and government officials from entering into non-disclosure agreements aimed at keeping details of the project secret as negotiations are underway.

Reviews of data center proposals by NBC News and Wisconsin Watch revealed local officials across the country and in the state are entering into such secrecy agreements, especially when it comes to large-scale projects.

The Senate Committee on Utilities, Technology and Tourism held a public hearing Tuesday on the bill, which drew several supporters, including Wisconsin-centric comedian Charlie Berens.

“I think it is an imperative we implement stronger guardrails to protect people and not greedy data centers that only care about their own profit and not of the best interest of the community,” Erin Pintar of Milwaukee said.

The Wisconsin Data Center Coalition and the Wisconsin Manufacturers and Commerce organizations registered against the bill, which is authored by Republican lawmakers.

Prescott Balch, a retired tech executive and candidate for Caledonia trustee, said lawmakers also should address the timeline for public input, arguing a typical timespan of less than two months is not enough for a community to understand a proposal and advocate for itself. He suggested a “cooling off period” of at least four months.

“An eager village board and staff coupled with a well-funded, marketing-savvy tech company makes it nearly impossible for the community to have a chance at making their voices heard,” Balch testified. “Give us four months as a community to organize. … Just level the playing field.”

The bill would prohibit developers of data centers from entering into a nondisclosure agreement or any similar arrangement with the “purpose or effect of concealing the details of the development of the data center with, or preventing the public review of, a (political subdivision) or person selling property to the data center.”

The bill would also prevent a local government from approving a data center development project if the operator had entered into such an agreement.

Lawmakers could take up the bill yet this session, which is slated to end by March.

Molly Beck can be reached at molly.beck@jrn.com.