Senate Committee Approved Bill Banning Data Center NDAs

The legislation aims to increase government transparency regarding development projects across Pennsylvania.

Updated on Sept. 29, 2026 in Legislative Policy

Bold flat-color illustration featuring a geometric industrial transformer station, representing the scale of data infrastructure development in Pennsylvania.
The Pennsylvania Senate Communications and Technology Committee unanimously approved a bill prohibiting local governments from signing non-disclosure agreements with data center developers. AI Illustration. Upload story photo >

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Should local government officials be prohibited from signing non-disclosure agreements with private developers?

The Senate Communications and Technology Committee unanimously voted to approve a bill prohibiting state and local government entities from entering into non-disclosure agreements with data center developers. This measure seeks to allow officials to communicate more openly with residents about upcoming projects.

Why it matters

Current non-disclosure agreements have restricted the ability of local leaders to share development details with the public. Prohibiting these contracts is intended to ensure community members remain informed about how data centers affect their neighborhoods.

The committee approved the bill unanimously on September 29, following an 11-week legislative break. Previously, the House approved a related bill requiring data center operators to attest to the absence of government NDAs in a 171-31 vote.

The players

Senate Communications and Technology Committee

This legislative body oversees issues related to telecommunications, data infrastructure, and technology policy in the Pennsylvania General Assembly.

The details

The bill targets a common practice where nearly half of the municipalities hosting major data centers have signed secrecy agreements with developers. If enacted, this legislation will force a change in how local governments negotiate and manage these development projects.

Timeline

  1. The House passed the Ciresi bill in June 2026.

  2. The Senate committee approved the NDA ban on September 29, 2026.

Political Context

Opposition to this bill often centers on the argument that non-disclosure agreements are necessary to attract competitive infrastructure investments. Critics of the bill argue that limiting these tools could hinder the state's ability to remain a primary destination for national data center developers.

This legislation could lead to more public meetings and disclosures regarding proposed data center sites in your community. Residents may gain a clearer understanding of how these projects will impact local infrastructure, traffic, and zoning decisions.

The takeaway

Transparency in government contracts ensures that residents are not blindsided by large-scale industrial projects in their backyard. Voters interested in development should monitor future Senate floor sessions to see if this bill becomes law.

Further reading

Learn more about local efforts to regulate industrial development in the Legislative Policy section.

Live Poll

Should local government officials be prohibited from signing non-disclosure agreements with private developers?