Public officials in Louisiana and other states have increasingly used nondisclosure agreements (NDAs) to shield negotiations regarding data center developments from the public. In Boyce, Louisiana, residents recently learned that state and local leaders signed multiple secrecy agreements with Dallas-based Applied Digital Corp. for a $3.6 billion project. While officials argue these agreements are necessary to protect corporate trade secrets and maintain competitiveness, local residents have raised concerns about the lack of transparency regarding environmental and utility impacts.
The data center in Rapides Parish, now named Delta Forge 1, is expected to occupy a 300-acre site and draw 300 megawatts of electricity in its first phase. This energy consumption is equivalent to the amount needed to power approximately 200,000 homes on a summer day, according to U.S. Energy Information Administration data. The deal includes a state sales tax break on equipment, part of a broader initiative by Louisiana to attract artificial intelligence investment. Construction began after the England Economic and Industrial Development District (EEIDD) approved the deal in April, following months of confidential negotiations under the code names "Project Lightning" and "Project Pixel."
Public records requests by the Gulf States Newsroom and Type Investigations identified at least 54 NDAs signed by Louisiana elected officials since early 2024. In the Boyce project, signees included at least five state senators, the Rapides Parish assessor, and members of the EEIDD. During a June town hall meeting, residents questioned the impact on water and power resources. Officials stated that a third-party environmental study showed negligible impact but declined to release the full study to the public, citing the confidentiality agreements.
The practice of using these agreements has prompted legislative responses in multiple states as residents in Arizona, Indiana, Wisconsin, and Pennsylvania have reported similar experiences. Lawmakers in Michigan, Oklahoma, Kentucky, and Ohio have introduced bills to prohibit or restrict public officials from signing NDAs for such projects. In August 2026, Pennsylvania Governor Josh Shapiro issued an executive order banning their use for data center projects by agencies under his oversight. These actions establish a growing legal precedent that challenges the standard industry practice of private negotiations for public economic development deals.
What happens next depends on the progress of construction and the outcome of pending state legislation. In Boyce, initial operations at the Delta Forge 1 facility are scheduled to begin as soon as mid-2027. Meanwhile, the effectiveness of NDAs remains a point of internal debate within the industry; Applied Digital’s CEO stated that while the company uses NDAs to comply with securities laws and prevent insider trading, he would prefer to move away from them. Conversely, officials in nearby West Feliciana Parish have demonstrated that similar large-scale projects, such as a $10 billion data center, can be negotiated without NDAs by posting all land, water, and power agreements directly to the parish website.