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Policypublished

North Dakota Hearing Puts AI Data-Center Permits and NDAs Under Local Scrutiny

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 Hearing Puts AI Data-Center Permits and NDAs Under Local Scrutiny
North Dakota Hearing Puts AI Data-Center Permits and NDAs Under Local Scrutiny
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North Dakota lawmakers are preparing to consider a temporary ban on nondisclosure agreements for data centers and other industrial projects, even as a separate committee hearing ended without a decision on new permits. That distinction matters: the NDA debate is not the same as the proposed pause on hyperscale data-center development, and the measure could clarify which agreements are covered rather than prohibit them outright. At the hearing, residents challenged both the speed of development and the way the discussion was handled. Michel Berg, a farmer, said people learned about an Oliver County project less than three months before construction began. Some attendees also objected to special-interest groups speaking before the public. Committee Chairman Jonathan Warrey warned that disruptions could lead to removal by the Highway Patrol. Vern Thompson urged lawmakers to pause new hyperscale permits, citing his assertion that most North Dakotans support a temporary halt. County officials pushed back on any suggestion that siting decisions belong solely at the state level. The North Dakota Association of Counties said counties decide where, how, and under what conditions data centers are built. Its executive director, Aaron Birst, said lawmakers may mainly need to clarify what an NDA does and does not cover. The committee is also hearing from energy companies, utility officials, pollution regulators, and policy experts. The immediate question is whether lawmakers treat this as a permitting issue, a transparency issue, or two separate policy tracks.

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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. Lawmakers are separately scheduled...

  1. 01

    A farmer said residents learned about an Oliver County project less than three months before construction began.

  2. 02

    The North Dakota Association of Counties said counties determine where and under what conditions data centers are built.

  3. 03

    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.

A hearing over pace and participation

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 confidentiality question remains separate

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 committee’s agenda reaches beyond permits

  • Presentations include policy experts, the energy industry, and state utility and pollution regulators.
  • Public comment was scheduled for 11:15 a.m. during Monday’s meeting at the state Capitol.

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.

Sources

  1. kfyrtv.comPublic voices concerns over AI, data center discussions
  2. kfgo.comPublic can testify Monday at AI and data center committee

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