Portland pushes for transparency in 'secret' data center deals

A Portland City Council committee has voted to advance a resolution urging the mayor and city administrator to avoid entering into broad nondisclosure agreements (NDAs) with data center developers. The move signals a push for greater public oversight as the city grapples with the rapid expansion of AI-driven infrastructure.

The proposal, introduced with the help of Councilors Candace Avalos, Mitch Green, and Tiffany Koyama Lane, does not strictly prohibit the use of NDAs but encourages officials to avoid them to ensure transparency. Councilor Candace Avalos emphasized the goal of the measure, stating, "We want to make sure that our government officials and the administration aren't unnecessarily signing NDAs."

The push for transparency

While the current resolution serves as a guideline rather than a hard ban, city leadership has indicated that more aggressive measures may follow. Councilor Mitch Green noted that if this initial step proves insufficient, the next phase could involve amending the city code to ban NDAs entirely.

This local effort is part of a broader regional struggle over the environmental and utility costs of data centers. In nearby Hillsboro, Oregon, officials have already enacted a pause on data center development. At the state level, a group of Democratic lawmakers is preparing to introduce a three-year statewide moratorium during the 2027 legislative session to address the strain these facilities place on land, air, water, and the electrical grid.

Industry implications

Data center operators frequently utilize NDAs to keep project specifics confidential during negotiations. However, critics argue these "secret" agreements prevent the public from understanding the true scale of resource consumption—specifically water and power—before large-scale projects are approved.

Governor Tina Kotek has voiced strong support for local moratoriums, arguing that the state currently lacks the authority to implement a statewide ban. Kotek highlighted the imbalance between corporate gain and public cost, stating, "Data center corporations are taking Oregon out to an expensive dinner and leaving our environment, communities, and people to foot the bill."

What's next

As the resolution moves forward, the city will monitor whether developers and administrators adhere to the spirit of transparency. The primary point of contention remains whether a non-binding resolution is enough to curb the use of secrecy in infrastructure deals or if Portland will be forced to codify a total ban into city law to protect its utility resources.