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EXCLUSIVE
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THE DATA CENTER JUGGERNAUT: HOW BIG TECH USES SECRECY AGREEMENTS TO NEUTRALIZE DEMOCRACY ONE TOWN AT A TIME
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Seven in ten Americans oppose data centers in their communities. Construction is proceeding at record pace anyway. The mechanism that makes this possible is hiding in plain sight.
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SALINE, MICHIGAN
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The residents of Saline, Michigan voted against a $16 billion data center proposed for their community. Weeks later, construction began anyway. [1]
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That single sentence — stripped of context, presented as a standalone fact — is either a clerical error, a misunderstanding of how local government works, or something considerably more troubling. It is not a clerical error. It is not a misunderstanding. It is, according to a mounting body of documented evidence from communities across the United States, the predictable endpoint of a systematic strategy deployed by the world's largest technology companies to neutralize democratic opposition before it can gain enough momentum to matter.
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The strategy has a name. It is built around a legal instrument that most Americans associate with celebrity divorces and corporate trade secrets. It is the nondisclosure agreement, and it is reshaping the relationship between citizens and their elected representatives in ways that have received scattered local coverage but have not yet been assembled into the national story they constitute.
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THE NUMBERS
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There are more than 4,000 data centers currently operating in the United States as of December 2025, with nearly 3,000 more in various stages of development. [2]
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Average monthly spending on data center construction has increased more than 600 percent in two years and is on pace to reach roughly $121 billion in 2026. [3]
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The companies driving this expansion — Google, Amazon, Microsoft, Meta, and OpenAI among them — have collectively committed over $1 trillion to data center infrastructure in the United States.
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The communities receiving these facilities have not, in the main, asked for them.
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A Gallup survey conducted in early 2026 found that seven in ten Americans oppose the construction of AI-supporting data centers in their local area. Nearly half were strongly opposed. Just seven percent were strongly in favor. [4]
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At least 48 data center projects representing $156 billion in investment were blocked or stalled by local opposition in 2025 alone, according to supply chain and political risk analyst Miquel Vila, who maintains a dedicated tracking database. [1]
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Those are the projects that got stopped or slowed. The ones that proceeded — the ones where communities organized, showed up to public hearings, filled comment periods, and voted against, only to watch construction begin anyway — those are the ones that tell the more important story.
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THE MECHANISM
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The pattern works as follows, and it works this way consistently enough across dozens of states and hundreds of communities that consistency itself is the story.
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A technology company or its representative — often operating through a shell company with a name that reveals nothing about its actual identity or purpose — approaches a local economic development office or city manager. A nondisclosure agreement is presented. Local officials are told that signing is a precondition for receiving any information about the project at all. The NDA binds them to secrecy about the company's identity, the project's scope, its environmental footprint, its demands on local utilities, and its timeline. In exchange, officials receive the promise of jobs and tax revenue.
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A review of more than 30 proposals across 14 states, conducted by NBC News, found that local officials routinely signed NDAs and worked with shell companies, in some cases leading them to actively conceal project information from the residents they were elected to represent. [5]
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Pat Garofalo, director of state and local policy at the American Economic Liberties Project, described the practice with notable directness. "That violates a very fundamental norm of democracy," he told NBC News. "They are answerable first to the voters and to their constituents, not to some secret corporation that they're cutting deals with in the back room." [5]
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By the time residents learn that something is happening — through a notice in a local paper, a neighbor's tip, a zoning change that appears on a council agenda without explanation — officials have typically been working with the developer for a year or more. Relationships are established. Economic projections have been presented, accepted, and in some cases publicly endorsed. Zoning ordinances have been quietly amended. The deal, in every meaningful sense, is already done. The public hearing that follows is theater.
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"The democratic process where my voice is supposed to matter has been hijacked by big tech." — Aubree Derksen, Pine Island, Minnesota, testifying before a state legislative committee.
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WISCONSIN
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Wisconsin Watch, a nonprofit investigative newsroom, documented in January 2026 that at least four local governments in Wisconsin had signed data center secrecy agreements with technology companies. The investigation is worth examining in detail because it illustrates how the mechanism operates at the ground level. [6]
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In Beaver Dam, Wisconsin — a city whose official core values include "communication matters" — officials signed a nondisclosure agreement and spent the next fourteen months keeping a $1 billion, 520-acre data center proposal hidden from the public. When the city finally acknowledged in February 2025 that it was working with a company on a "potential data center project," the company's identity was still not disclosed. [6]
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In Menomonie, Wisconsin, the city signed its NDA in February 2024. Two months later — before any public announcement had been made — the city council unanimously amended a land use ordinance to redefine "warehousing" to include data centers. The amendment gave the proposed $1.6 billion project its legal footing in the local zoning code. Residents did not learn about the project until July 2025, sixteen months after the ordinance had already been changed to accommodate it. [6]
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In Port Washington, Wisconsin, the situation escalated beyond ordinance amendments. Three people were arrested during a city council meeting about a proposed $15 billion data center from OpenAI, Oracle, and Vantage Data Centers. Residents subsequently launched a recall campaign against Mayor Ted Neitzke, citing secrecy about the project's development. [6]
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The Mount Pleasant case is the largest in the state. Microsoft has announced plans to add fifteen data centers worth $13 billion to a $7 billion complex already under construction there — a total investment of $20 billion in a single Wisconsin community. [6]
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MINNESOTA
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In Pine Island, Minnesota — a town of fewer than 4,000 people — city officials knew about a proposed Google data center for two years before any public disclosure was made. A nondisclosure agreement kept the project secret not only from residents but from a sitting state senator, who learned the details the day before the formal announcement. "The guy from Xcel Energy came into my office and said, it's going to be Google, and it's going to be us," State Senator Steve Drazkowski told a legislative committee. [7]
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Aubree Derksen, a Pine Island resident who organized opposition to the project, testified before that same committee. "I know what it is to be kept in the dark, being a resident desperately fighting to be heard, even in a small town of fewer than 4,000 people," she said. "The democratic process where my voice is supposed to matter has been hijacked by big tech." [7]
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Similar accounts came from residents of Farmington, Hermantown, and other Minnesota communities. A bill to ban local officials from signing NDAs with data center developers passed one chamber of the Minnesota legislature before failing in committee in April 2026, with Republican members providing the votes that killed it. The bill's sponsor described the outcome as a frustrating setback. "Unfortunately, when some members come to the Capitol I think they forget who they represent," he said. [8]
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ARIZONA
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The Tucson case is perhaps the cleanest illustration of what the NDA system produces, because the truth came out by accident.
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A proposed Amazon Web Services data center in Tucson was known throughout its approval process only as "Project Blue." County supervisors who voted on the project said they had not been provided with relevant information regarding the identity of the data center's end user, its environmental impact, or its demands on local utilities — before they voted to approve it. Amazon's identity was not revealed until a document was mistakenly sent to a local journalist, a month after the approval vote. [9]
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The project was subsequently blocked by the Tucson City Council, and county supervisors reformed their NDA process in the aftermath. That outcome — community opposition ultimately succeeding — is the exception. In most documented cases, construction proceeds.
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KENTUCKY
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In Mason County, Kentucky, in March 2025, three men approached Dr. Timothy Grosser and his son Andy with an offer of $10 million for their 250-acre farm — thirty-five times what the family had paid for it in 1988 and significantly above market value for the area. The buyers refused to identify themselves or the company they represented, saying only that it was a Fortune 100 company. They presented an NDA as a condition of receiving any further information. Grosser refused to sign it and refused to sell. [5]
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He was one of two holdouts. Eighteen of the twenty residents approached with similar offers ultimately signed property purchase contracts. The surrounding community learned, through subsequent reporting, that the unnamed Fortune 100 company was interested in building a data center on the assembled land. The identity of the company was not confirmed through official channels.
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Mason County Attorney John Estill, who signed an NDA related to the project, told NBC News that some local officials felt pressured to sign in order to keep their communities in consideration for the economic development the projects promised. [5]
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THE OPPOSITION THAT IS GROWING
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The resistance is real and it is growing, and in some communities it has produced tangible results.
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Communities in at least fourteen states have enacted temporary moratoria on data center development. [10]
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In Prince George's County, Maryland, leaders imposed a 180-day pause on new data center proposals after community demonstrations and a petition that gathered over twenty thousand signatures. In San Marcos, Texas, city council members paused a $1.5 billion, 200-acre proposal after residents raised concerns about energy demand in an area already vulnerable to brownouts. [11]
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Minneapolis enacted a six-month moratorium on large data centers in May 2026, with council members working to update zoning ordinances and produce a public report covering environmental impacts, permitting constraints, and utility infrastructure. [4]
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In Reno, Nevada, the city council voted 6-1 to approve a pending moratorium on data centers in May 2026, the first stage of a two-part process. [12]
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In Seattle, two developers withdrew plans to connect large-scale data centers to the city's electric grid in May 2026 following a wave of public opposition, just as three city council members prepared legislation for a one-year ban. [3]
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Virginia, which has more data centers than any other state — Prince William County alone had forty-four active centers and fifteen under construction as of August 2025 — has seen sustained grassroots campaigns that drew national media attention and successfully delayed or blocked major projects. [2]
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The moratorium movement has escalated from local town boards to state legislatures in early 2026, threatening to reshape the national permitting landscape. [10]
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WHAT THE OPPOSITION IS ACTUALLY FIGHTING
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The concerns driving community opposition are environmental and infrastructural, and they are not speculative.
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Data centers consume water in large quantities — for cooling systems that run continuously. They consume electricity at scales that strain local grids and drive up utility costs for surrounding residents and businesses. They generate noise from the industrial cooling equipment that runs around the clock. And they tend to produce fewer local jobs than the economic development pitches suggest — these are largely automated facilities requiring small, specialized workforces rather than the broad employment base that justifies the tax incentives and infrastructure investments communities provide.
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The energy demand is the issue that has attracted the most attention. Data centers supporting artificial intelligence workloads require significantly more power than conventional data centers, and the pace of construction is outrunning the capacity of regional power grids to support it.
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Communities that were already facing grid vulnerability — Texas being the most prominent example — are being asked to accommodate facilities that will materially worsen that vulnerability.
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The water demand is less discussed and equally significant. A single large data center can consume millions of gallons of water per day. In water-stressed regions of the American West and Southwest, this is not an abstraction. It is a direct competition for a resource that local agriculture and residential use depend on.
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Neither of these impacts is typically disclosed in the economic development pitches that local officials receive under NDA before any public process begins.
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THE LARGER ARCHITECTURE
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The data center NDA story does not exist in isolation. It sits within a broader documented pattern of corporate capture of local democratic processes — one that was identified and named in the FBI and Department of Homeland Security documents leaked in late May 2026, which revealed that federal agencies had created a new domestic threat category called "anti-tech violent extremism" and were using it to monitor activists who oppose data center construction. [13]
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The convergence of those two stories — the systematic use of NDAs to prevent informed democratic opposition from forming, and the federal surveillance of that opposition once it does form — describes a pincer movement whose implications extend considerably beyond any individual town council vote.
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On one side: the mechanism that prevents communities from knowing what is being planned for their land, their water, and their power grid until it is too late to stop it. On the other: the federal counterterrorism infrastructure being trained on the people who figure it out anyway and decide to show up and say something about it.
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Between those two pressure points is the ordinary American resident — the farmer in Mason County who wouldn't sign the NDA, the woman in Pine Island who testified before her state legislature, the three people arrested at a city council meeting in Port Washington — trying to participate in a democratic process that has been systematically engineered to produce a predetermined outcome.
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Saline, Michigan voted no. Construction started anyway.
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That is not a malfunction. That is the system working exactly as designed.
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SOURCES
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[1] Fortune, May 18, 2026: "Communities are blocking billions in data centers. Big Tech has wagered $1 trillion otherwise."
fortune.com/2026/05/18/commu…
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[2] The Progressive, March 4, 2026: "Resisting the Data Center Boom."
progressive.org/magazine/res…
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[3] ConstructConnect, May 2026: Data Center Report, monthly spending analysis.
news.constructconnect.com/se…
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[4] Minneapolis Daily Planet, May 22, 2026: "Minneapolis City Council approves six-month moratorium on large data centers." Gallup survey cited within.
dailyplanetdc.com/2026/05/22…
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[5] NBC News, October 28, 2025: "How Big Tech uses NDAs to hide AI data center details from Americans."
nbcnews.com/tech/tech-news/d…
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[6] Wisconsin Watch / PBS Wisconsin, January 27, 2026: "At least four local governments in Wisconsin signed data center secrecy deals."
wisconsinwatch.org/2026/01/w…
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[7] Governing, April 8, 2026: "Data Centers and the Abuse of Secrecy."
governing.com/infrastructure…
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[8] MinnPost, April 17, 2026: "After setback in the House, ban on NDAs has narrow path forward."
minnpost.com/state-governmen…
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[9] American Economic Liberties Project, November 2025: "How to Rein in Big Tech's Secret Data Center Deals." Tucson/Project Blue documentation.
economicliberties.us/wp-cont…
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[10] Introl Blog, February 25, 2026: "Data Center Opposition: The $64B Financial Risk."
introl.com/blog/data-center-…
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[11]
TechPolicy.Press, November 10, 2025: "Local Governments are Learning How to Negotiate With Data Center Developers."
techpolicy.press/local-gover…
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[12] KOLO TV, May 15, 2026: "Reno City Council approves a pending moratorium on data centers."
kolotv.com/2026/05/15/reno-c…
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[13] WIRED, May 26, 2026: Reporting on leaked FBI and DHS documents establishing 'anti-tech violent extremism' domestic surveillance category.
wired.com
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Copyright © 2026 by Robin Riley Reynolds / All Rights Reserved
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