As the North Dakota Legislature prepares to convene a special session on Sept. 2, elected officials face growing pressure to increase transparency around proposed data center projects that have drawn public concern across the state.
Controversy over nondisclosure agreements
Opposition centers on nondisclosure agreements (NDAs) between local governments and developers, which critics say have shrouded negotiations in secrecy and prevented residents from learning how projects could affect communities.
Those concerns have been sharpened by the way some land has changed hands: residents and local leaders say developers sometimes negotiate with individual landowners under confidentiality clauses, creating situations where neighbors learn about large transactions only after construction has begun.
“There’s a lot that seems to be done with nondisclosure agreements. All of a sudden, someone’s neighbor is getting this massive multimillion-dollar check and you’ve got earth movers coming in and tearing up the property across the road,” said Holly Burch, a retiree in Morton County.
Burch, who said she has a background in electrical generation, questioned whether the state’s power infrastructure can reliably accommodate a rapid influx of large, energy-intensive facilities. Morton County and several others have enacted moratoriums or ordinances to pause or restrict new data center applications while local officials study the impacts.
Legislative options and arguments
Senate Majority Leader Sen. David Hogue, R-Minot, has indicated that permitting and zoning decisions should proceed openly, a view echoed by residents who want local boards and county commissions to deliberate in public without confidentiality limits imposed by developers.
Industry representatives, however, warn that stringent limits on NDAs or other transparency measures could deter investment and make it difficult to negotiate complex infrastructure investments that companies say require confidentiality for competitive reasons.
Because there is no centralized state agency overseeing data center projects, approvals fall to local planning boards, county commissions and townships — a patchwork approach that some lawmakers say requires clearer statewide guidance so communities are not caught off guard.
Public sentiment and local actions
National polling underscores a larger trend: a recent Heatmap News survey found substantial opposition to siting data centers in local communities. That national sentiment mirrors the unease expressed in North Dakota rural counties where jurisdictions have moved to restrict development.
- Morton County — moratoriums and increased scrutiny of proposed facilities
- Cass County — developer negotiations have prompted calls for greater disclosure
- Local landowners — some say they are being targeted with offers that neighbors only learn about after deals proceed
Residents have cited three primary concerns: the confidentiality of land and lease deals; the adequacy of power supplies; and the speed at which developers claim they can build and bring centers online.
Power and logistics questions
One recurring question centers on energy availability. Data centers consume significant electricity, often requiring dedicated transmission upgrades and backup generation. Critics argue planning for these demands must be transparent so communities can assess potential strain on the grid and tax base implications.
Proponents say investment from data centers can bring jobs, tax revenue and improvements to local infrastructure, while opponents caution that the long-term community trade-offs and environmental impacts require careful public review.
| Issue | Concerns cited |
|---|---|
| NDAs | Limits public input; hides deal terms |
| Power | Capacity, reliability and rate impacts |
| Local control | Patchwork approvals; inconsistent ordinances |
What to expect in the special session
Legislators could consider bills restricting the use of nondisclosure agreements between local governments and developers or establishing standards for disclosures in permitting processes. Any proposal will be weighed against arguments that tight restrictions might impede economic development.
For residents, the session offers a clear moment to make voices heard. County meetings, public comment periods and outreach to representatives will shape how the state balances transparency, development and energy planning in the months ahead.
Local officials, developers and community members will be closely watching which measures gain traction when lawmakers convene next week.
