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Fredericksburg Targets Data Center Secrecy With Proposed NDA Ban: Report

Fredericksburg leaders want Virginia lawmakers to bar local governments from signing NDAs in data center negotiations.

FREDERICKSBURG, VA — Fredericksburg leaders want Virginia lawmakers to prohibit local governments from using nondisclosure agreements in data center negotiations, the Fredericksburg Free Press reported.

The City Council agreed Tuesday to add the proposal to its draft legislative agenda for the General Assembly session beginning in January.

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An executive order issued by Gov. Abigail Spanberger in September prohibits state agencies from using such agreements in data center deals, but it does not cover local governments.

Council member Will Mackintosh told the Free Press there is "no room for secrecy in these deals," arguing that companies apply trade-secret protections too broadly to information such as projected water use. He said statewide restrictions would also prevent localities that reject the agreements from being placed at a competitive disadvantage.

The council is expected to formally adopt its legislative agenda Oct. 27. Fredericksburg approved a zoning district allowing data centers in 2025, followed by the announcement of a potential $10 billion development in Celebrate Virginia South, though construction has not begun.

Read the Free Press' full report for more.

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