A 300-acre data center project in Boyce, Louisiana, has sparked debate over the use of nondisclosure agreements between developers and local officials to keep project negotiations confidential. The facility, operated by Dallas-based Applied Digital Corp. and named Delta Forge 1, is set to draw 300 megawatts of electricity in its first phase and represents a $3.6 billion investment. Construction has already begun, with initial operations expected to commence in mid-2027.
Local residents, including beekeeper Foster Hensel, have expressed concerns about the lack of public information regarding the project’s environmental and economic impacts. At least five state senators, the parish assessor, and members of the state-created industrial development board that negotiated the deal signed NDAs under the code names “Project Lightning” and “Project Pixel,” preventing public disclosure of negotiation details. A town hall held in June revealed substantial community frustration, with residents questioning how their elected officials prioritized corporate interests over constituent representation and demanding clarity on impacts to water, power, and environmental resources.
The practice of using NDAs for data center negotiations is widespread across the country, according to environmental sociologist Eric Bonds, who found the agreements were used in at least 25 of 31 data center projects surveyed in Virginia. Bills to restrict or ban NDAs on data center projects have been introduced in Michigan, Oklahoma, Kentucky, and Ohio, while Pennsylvania Gov. Josh Shapiro recently banned their use for state-overseen data center projects. Critics argue the agreements give developers significant leverage by allowing them to control information asymmetrically across multiple jurisdictions while negotiating for favorable terms and tax incentives.
Experts note that NDAs serve legitimate purposes for protecting corporate proprietary information and enabling candid negotiations, but they also create transparency deficits that disadvantage communities. Louisiana records requests identified at least 54 NDAs signed by elected officials since early 2024 covering various project types. The Applied Digital project includes a state sales tax break on data center equipment as part of Louisiana’s broader strategy to compete for artificial intelligence investments.
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