Louisiana data center deal shrouded in NDAs triggers community outcry and legislative action

In central Louisiana, a 300-acre data-center campus dubbed Delta Forge 1 is under construction after Applied Digital Corp. signed a series of nondisclosure agreements with local and state officials, including five state senators, the Rapides Parish assessor and members of the England Economic and Industrial Development District. The NDAs, labeled "Project Lightning" and "Project Pixel," kept details of the $3.6 billion project hidden until construction began, fueling anger at a town-hall meeting where residents demanded information on water, power and environmental effects.

Officials argue the agreements protect proprietary data and comply with securities law, while critics say they undermine transparency. Similar confidentiality practices are common nationwide, though several states have introduced legislation to ban them, and Pennsylvania’s governor has already prohibited NDAs for data-center projects. The Louisiana deal includes a state sales-tax incentive and is projected to consume 300 megawatts—enough for roughly 200,000 homes—and generate more than 1,000 construction jobs and 200 permanent positions.