Secret Agreements Keep Neighbors in the Dark as Massive Data Centers Move In
Near fields of cotton and soybeans where his bees find food, a local beekeeper named Foster Hensel opens up one of his hives. A loud buzz rises into the air. He uses a small tool to puff smoke and calm the insects, noting that they seem a bit upset. But Hensel is worried about something else just down the road. In the small town of Boyce, construction is beginning on a massive 300-acre project.
He fears that these giant new buildings will drive up his power bills and harm the local environment. He wonders why nobody is sharing information. To him, the lack of answers feels highly suspicious.
The negotiations for this project were kept quiet. The company behind the build, a Texas-based business called Applied Digital, and local leaders signed nondisclosure agreements (NDAs). These legal contracts prevent anyone from talking about the plans publicly. While this secrecy has left local residents feeling confused and distrustful, experts say using these secret deals is a common practice across the country.
A Growing Trend of Secret Deals
Many communities are starting to push back against these private agreements. Some lawmakers are trying to stop them altogether. Consider these recent efforts:
- New laws proposed: States like Michigan, Oklahoma, Kentucky, and Ohio have introduced bills to ban secret deals for data center projects.
- Statewide bans: The governor of Pennsylvania recently banned the use of these secret contracts for any data center projects overseen by state agencies.
- Widespread use: A study of data center projects in Virginia found that secret agreements were used in 25 out of 31 projects surveyed, showing how common the practice has become.
Companies and public officials argue that these contracts are necessary to protect trade secrets and allow for open negotiations. However, critics point out that keeping secrets gives big developers an advantage. When companies can hide information, they can easily move from town to town to get the cheapest deals without the public knowing.
The Secret Project with Huge Power Needs
In the small town of Boyce, which has only about 1,000 residents, many people complain that they were kept in the dark until it was too late. Heavy machinery is already clearing the land, and the site could start operating by mid-2027. To attract the business, state officials offered major tax breaks on equipment.
Before the public knew anything, several state senators, a local tax assessor, and members of an industrial development board signed secret contracts. These agreements used mysterious code names like "Project Lightning" and "Project Pixel" to keep the public from finding out what was happening.
The project has now been officially named Delta Forge 1. It is a massive $3.6 billion campus. In its first phase, it will require 300 megawatts of electricity. That is a massive amount of power—enough to run about 200,000 homes on a hot summer day. The secret deals were signed in late 2024 and early 2025, and the local board approved the project in a quick public meeting with very little discussion.
Tensions Boil Over at a Town Hall
In June, local residents gathered in a hot school gym to voice their anger. The meeting was tense, and one neighbor even broadcasted the event online so others could watch. Residents demanded to know how the massive facility would affect their water supply, electricity grid, and local environment.
When officials mentioned that an environmental study had been completed but would not be shared with the public, the crowd reacted with boos and jeers. Some in the crowd shouted about the secret contracts. The company tried to calm fears by stating that the facility would use a special water-saving system, but residents remained upset about the lack of honesty.
One resident, Shannon McManus, noted that neighbors began hearing rumors late last year but could not get any straight answers. He argued that the public should have had access to the information before any final decisions were made.
Why Leaders Defend the Secrecy
Despite the anger from the community, the officials who signed the agreements defended their actions. Ralph Hennessy, the director of the local development board, dismissed the complaints, calling the critics a loud minority. He pointed out that the project is expected to create 1,000 construction jobs and 200 permanent jobs. He insisted that secret agreements are completely legal and necessary for economic growth.
Other state economic officials agreed, arguing that without these private agreements, big companies would simply take their business elsewhere. They claim that secret contracts actually make companies more comfortable sharing details with local leaders during negotiations.
The chief executive of the technology company, Wes Cummins, admitted that these contracts can feel sneaky to everyday citizens. However, he explained that because his company is publicly traded on the stock market, they must follow strict financial laws. The secret agreements help protect local officials from accidentally breaking rules regarding insider trading.
An Alternative Way: Total Transparency
Not every town uses secrets to win big business. In a neighboring parish, a massive $10 billion data center is currently being built. The local leader there, Kenny Havard, chose not to use any secret agreements at all.
He believes that when a project involves public land, taxes, and resources, everything should be open to the public. His office posted all the details of the project online, including:
- Water and power usage agreements
- Land purchase details and property appraisals
- A full copy of the final contract between the town and the company
While residents in that community still worry about noise and resources, they do not have to wonder about the details of the deal. Local leaders there are proud to show that major technology projects can be completed without keeping the community in the dark.