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House passes bill to bar nondisclosure agreements in data center deals after heated debate
Summary
Lawmakers voted to ban certain nondisclosure agreements tied to data center approvals, citing transparency for local communities; supporters and opponents clashed over local control and broader regulatory implications before final passage (yeas 171, nays 31).
The Pennsylvania House on June 30 passed House Bill 2359, a bill that prohibits government agencies from entering into nondisclosure agreements related to data center projects.
"This bill allows our neighbors to know what's being built, what the deal is, and doesn't hide behind an NDA any longer," Representative Cerisi said on the floor while urging an affirmative vote, arguing the measure restores transparency to local decision-making.
Opponents warned that the bill goes beyond NDAs and expands state authority. Representative Kale called it "a knee-jerk reaction" that would not accomplish the intended goals and said the measure quietly creates new reporting requirements and oversight by unelected officials. Representative Ledbetter said the legislation "uses that issue as the vehicle to impose an entirely new layer of regulation."
Proponents described local experiences they said justify the change: Representative Haddock recounted a data center proposal offering large sums to municipalities and said deals done behind closed doors have divided communities. "Everybody should know that they're paying hundreds of millions of dollars for their approvals," Haddock said.
After extensive floor debate highlighting transparency, local control and potential regulatory expansion, the House recorded final passage as yeas 171 and nays 31. The clerk announced the bill will be presented to the Senate for concurrence.
