Four Wisconsin municipalities signed confidential nondisclosure agreements to conceal major data center developments, according to an investigation by Wisconsin Watch. This secrecy shrouded projects, including one by Meta in Beaver Dam, for over a year before public disclosure. The practice draws scrutiny because these facilities drastically affect local economies, infrastructure, and energy consumption.
In Beaver Dam, city development officials signed an NDA with a shell company, Balloonist LLC, in late 2023 concerning a facility later confirmed to be Meta’s. The agreement prevented the disclosure of the project’s existence, even as the city took official steps toward approval. The development corporation leader stated confidentiality was necessary during the initial discussions.
Public awareness only emerged months later; the Beaver Dam Area Development Corp. formally announced a “potential data center project” in February 2025, fourteen months after the initial NDA. Meta confirmed its involvement eight months later, prompting resident frustration over the lack of early consultation.
Secrecy measures extended beyond formal NDAs in other locations, with officials in DeForest reportedly working behind closed doors for months on a proposed $12 billion facility. Residents opposed to the large-scale development argue that notification should occur when leadership first considers such proposals, regardless of the difficulty.
Economic development proponents defend the use of NDAs, arguing they are crucial for securing strategic investments by preventing competitors from learning a company’s plans prematurely. Tricia Braun, executive director of the Wisconsin Data Center Coalition, noted that companies require certainty before making such large commitments public.
However, opposition to the covert planning has spurred new legislative proposals aimed at instituting a statewide ban on data center NDAs. This emerging legislative focus reflects growing public demand for transparency when massive industrial projects are being negotiated.
The seven major data center initiatives currently pending or under construction in Wisconsin represent a combined value exceeding $57 billion. These facilities are increasingly important not only for general data storage but also for underpinning advanced artificial intelligence operations.
