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Resistance to data centers is frequently rooted in perceived violations of the democratic process. Developers often negotiate projects under non-disclosure agreements with local officials for months before the public learns about them. This creates a severe sense of power asymmetry, leaving residents convinced their small towns cannot secure fair protections against corporate interests.

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Contrary to stereotypes, local activists opposing data centers are often well-informed about the technology. Their resistance stems from a deep-seated distrust that corporations and local governments will honor promises regarding jobs and costs, citing past failures like Foxconn.

Virginia's executive order prohibits state agencies from entering into NDAs about data centers. This move directly confronts the common practice of shielding information about a project's resource demands and community impacts from the public, forcing greater transparency.

The tech industry often misreads local opposition to AI data centers as propaganda. In reality, the backlash is driven by tangible community concerns: rezoned land, new gas power plants, strain on the grid, and air pollution from backup generators. These are not imagined problems, and they are fueling significant local resistance.

Hyperscalers force local officials into non-disclosure agreements, which backfires spectacularly. This secrecy prevents officials from controlling the public narrative, allowing rumors and social media misinformation to flourish and destroy trust before a project is even formally announced.

Requiring developers to negotiate deals town by town creates immense power imbalances that fuel local political backlashes. Elevating negotiations to the state level allows governors' offices to set baseline terms for acceptable impact and compensation, saving developer resources and preventing inexperienced local officials from signing disadvantageous agreements.

The tech industry's practice of using NDAs when negotiating with local governments is counterproductive. It fuels a narrative of secretive, exclusionary deals, intensifying public mistrust in an era of low institutional confidence and reinforcing fears of oligarchic control.

In on-the-ground reporting across affected communities, local residents rarely bring up AI or fear of the technology itself. Instead, community opposition is driven almost entirely by quality-of-life nuisances caused by physical infrastructure and deep distrust of corporate backroom deals and perceived exploitation of local resources.

Just two years ago, communities offered tax subsidies to attract data centers. Now, due to intense public backlash, the dynamic has inverted. Tech companies must offer substantial upfront benefits and transparent deals to gain approval, effectively bidding for a community's acceptance.

The rush for AI infrastructure, driven by hyperscalers, creates a chain reaction where developers and states prioritize speed over all else. This process inherently excludes local residents, leading to fierce, predictable opposition when projects are revealed.

When building data centers, AI and cloud companies require local leaders and trade unions to sign strict NDAs. While a standard business practice, this secrecy prevents officials from addressing community concerns, leading to mistrust and the perception that something is being hidden, fueling backlash.

Non-Disclosure Agreements in Municipal Data Center Deals Catalyze Deep Grassroots Backlash | RiffOn