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Public frustration over project timing is now running alongside two distinct policy questions: whether to pause new hyperscale permits and whether to restrict nondisclosure agreements.
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North Dakota’s AI and Data Center Committee heard objections to the speed and transparency of proposed hyperscale projects, but reached no decision on permits or confidentiality rules. Residents advocated a temporary pause on new large-scale data-center permits, while county officials defended local siting authority and called for clearer boundaries around nondisclosure agreements.
A farmer said residents learned about an Oliver County project less than three months before construction began.
The North Dakota Association of Counties said counties determine where and under what conditions data centers are built.
Vern Thompson urged lawmakers to pause new hyperscale data-center permits, citing his assertion that most residents support a temporary halt.
North Dakota lawmakers heard public and industry views on AI and data centers as residents challenged the pace of proposed development and the handling of the hearing. Legislators are also scheduled to consider a temporary ban on nondisclosure agreements for data centers and other industrial developments later this week.
The Artificial Intelligence and Data Center Committee was announced in June. It has previously examined AI regulation, AI in education, risks to youth and data-center concerns; multiple data-center projects have been proposed in the state.
Some attendees objected to special-interest groups speaking before the public, and committee Chairman Jonathan Warrey warned that disruptions could lead to removal by the Highway Patrol. Community members also said projects felt rushed. Michel Berg, a local farmer, said the public learned of an Oliver County project less than three months before construction began.
The planned NDA discussion is a separate legislative item from Thompson’s request for a permit pause. Aaron Birst, executive director of the North Dakota Association of Counties, said another law may not be needed, but lawmakers may need to clarify what is and is not covered by an NDA.
The hearing did not produce a settled policy on hyperscale permits or NDAs. It did make the divide clear: some participants want a halt on new large projects, while county officials emphasized local siting authority and clearer rules around confidentiality agreements.
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