On a March afternoon in Mason County, Kentucky, Dr. Timothy Grosser and his son Andy faced a life-changing proposition: a $10 million bid for their 250-acre farm, an offer that represented a staggering return on their investment since they had purchased the land in 1988 at a fraction of that price.
However, the offer came shrouded in mystery, as the company behind the bid remained undisclosed.
A representative hinted at a connection to a major corporation interested in developing an industrial project, yet provided no further details and demanded a non-disclosure agreement (NDA) before any information could be shared.
Despite the lucrative offer, Grosser turned it down without hesitation, affirming, “I’m not selling my farm for any amount of money.”
Fast forward five months later, local officials revealed in a public meeting that Mason County was being considered for a new data center development.
Grosser’s experience underscores a widespread trend associated with the booming data center industry, which is facing criticism as it expands rapidly across the country.
Fueled by the increasing demand for artificial intelligence services, major tech companies are increasingly asking landowners and local governments to sign NDAs, limiting discussions on project specifics and creating uncertainty in communities.
The construction of hyperscale data centers—massive facilities that store servers and computing power—has surged nationwide.
Policies from President Donald Trump’s AI initiatives and various executive orders aimed at fast-tracking such projects have inflated their numbers, relaxing environmental regulations in the process.
Last year alone, hundreds of data center proposals were announced, often touted for their potential economic benefits by developers and local officials alike.
Proponents in the data center sector assert that NDAs are essential to safeguard competitive advantages and prevent rivals from gaining insight into their project strategies.
While NDAs are standard in many economic development deals, the rapid proliferation of data centers into suburban and rural areas has sparked community backlash over concerns about quality of life.
Locals frequently voice worries over rising utility costs, including electricity and water, often exacerbated by the high resource demands of data centers.
In Virginia’s Loudoun County, known as the world’s densest data center area, residents complain about incessant noise from cooling systems and backup generators.
Additionally, in South Memphis, Tennessee, the methane-powered turbines of an xAI data center contribute to air pollution that leads to uncomfortable smog conditions, although the company insists it stays within legal pollutant limits.
Amidst these challenges, the confidentiality requests tied to many projects have raised alarms in various communities, including Mason County, where multiple residents, including Grosser, were approached to sell their properties for prices significantly above market value, collectively estimating thousands of acres under negotiation.
According to Tyler McHugh, the director of the county’s industrial development authority, 18 landowners signed purchase agreements with the unnamed company, eager to proceed if the data center plans materialize.
Members of the Huddleston family, who have resided on their land for over 150 years, signed a contract agreeing to sell for $60,000 per acre.
Upon hearing neighbors discuss the land’s possible use for a data center, family member Delsia Huddleston Bare requested to be released from their confidentiality agreement.
Her concerns mirrored those of other community members: worries about potential noise, pollution, and groundwater contamination caused by the data center.
McHugh explained that transparency could scare off potential investments, wishing he could open the dialogue but fearing chaos.
He stated, “If I could go get on a megaphone downtown and say everything I know about this project, I would.
But if I did that, everyone in the county would share it on social media, and it would become a huge mess.
Companies don’t want to deal with that.”
Nevertheless, many residents express frustration over the opaqueness of the information.
An online group named “We are Mason County, KY” has gathered more than 500 signatures from concerned locals, arguing that the project threatens their quality of life and environmental integrity.
McHugh mentioned ongoing discussions to adjust the county’s zoning regulations to accommodate the data center plans.
This situation has prompted local homeowners like Jennifer Setty-Botkin, living near the proposed site, to challenge the secrecy through public records requests for impact assessments and meeting notes— all of which were ultimately denied.
According to Kentucky’s public records law, information concerning a potential business’s location is exempt from disclosure until a public announcement is made, complicating efforts for transparency.
Eric Bonds, a sociology and anthropology professor, conducted research indicating that a significant percentage of localities in Virginia with proposed data centers operated under similar NDAs.
Bonds identified that these agreements inhibit public discussion by preventing residents from accessing necessary information.
As opposition to data center developments intensifies across the United States, similar narratives are emerging.
In Saint Charles, Missouri, residents mobilized against a secretive data center proposal that remained undisclosed until pressure forced the developers to withdraw their plans.
Mayor Dan Borgmeyer felt constrained by NDAs, pleading with developers to allow him to disclose details to the community, arguing local concerns were valid and should not be silenced.
Saint Charles ultimately became the first city to enforce a moratorium on data centers, a move echoed by counties nationwide.
Tucson, Arizona’s case illustrates the detrimental effects of secrecy as well.
An NDA surrounding Amazon Web Services’ Project Blue left local officials unaware until public pressure exposed the hidden proposal.
Many local leaders expressed frustration over being unable to represent their constituents effectively due to the constraints posed by these agreements.
In response to the uproar over Project Blue, Tucson officials scrapped the project altogether and moved to dissolve NDAs affecting future proposals, prioritizing transparency over secrecy.
The data center industry’s emphasis on competitiveness has pushed some local officials into a precarious position, torn between enticing businesses and maintaining public accountability.
John Estill, the Mason County attorney who signed an NDA, underscored the challenges of balancing economic growth with the public’s right to know.
As officials argue that NDAs are vital for attracting new business, residents counter that protecting their community from potential harm should be prioritized over profits.
Mason County Schools Superintendent Rick Ross criticized the mentality behind sacrificing farmland for fleeting opportunities, stating, “We don’t have to give up our way of life and bow down to the data center in order to attract other business and industry.”
As the situation unfolds, county officials insist that the proposed data center could bring economic revitalization, offering around 400 high-paying jobs to a community struggling with job loss and declining population figures.
McHugh contended that this is not the moment for the county to reject interests from prospective developers.
Despite their plight, many Mason County residents remain skeptical about the undisclosed company’s true intentions.
Local resident Janet Garrison expressed frustration over the lack of community input from the start: “They could have come in and said we have a prime location and resources for a data center.
Why don’t we get together and have a big community discussion about the pros and cons?”
As tensions continue to rise, Mason County residents face impending changes as two of the state’s major power companies have proposed rate hikes, which, while not explicitly connected to data centers, could affect utility bills for locals.
Among incoming requests noted by East Kentucky Power Cooperative is a plan for transmission upgrades to support a significant data center load expected by 2031.
Concerned homeowners like Setty-Botkin, who appreciates Mason County’s tranquil environment, fear that a data center could irrevocably alter their peaceful lifestyle.
She reflected, “We love the community, but if this goes through and we have constant 24/7 noise and other issues like power surges, we’re going to want to move.
But then the problem is: who’s going to buy our house if we’re having those issues?”
Grosser shares his apprehension regarding the data center’s potential impact on the land—where he has cultivated numerous memories and experiences over decades.
He lamented, “It’ll knock out the woods I’m sitting right next to.
I’ve got too many memories, too much sweat and blood there.”
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