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Bill

HB 1246

prohibit nondisclosure of certain agreements related to data centers.

2026 Regular Session Introduced by Bobbi Andera and 6 co-sponsors

South Dakota would ban confidentiality agreements concealing public data center deals, requiring disclosure of government incentives and contract terms to taxpayers and communities.

State Affairs Do Pass , Passed, YEAS 9, NAYS 3
#confidentialinformation #datacenters #publicrecordsandfiles #stateaffairsandgovernment
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Bill Summary · HB 1246

Legislative bill overview

HB 1246 would prohibit companies from using nondisclosure agreements (NDAs) or confidentiality clauses to keep data center-related agreements secret from public disclosure. The bill appears designed to increase transparency around major data center projects, likely including details about tax incentives, infrastructure commitments, employment terms, or environmental impacts that companies typically negotiate privately with state and local governments.

Why is this important

Data center projects represent significant economic development investments for states, often involving substantial public subsidies, land use decisions, and infrastructure commitments. Currently, these deals are frequently negotiated behind closed doors with confidentiality requirements, preventing taxpayers and local communities from knowing the full terms of public investment. This bill would shift toward greater transparency in how governments allocate resources to attract these facilities.

Potential points of contention

  • Business competitiveness concerns: Companies argue that revealing deal terms puts them at disadvantage in negotiations with other states and exposes proprietary business information to competitors
  • Scope ambiguity: Unclear which agreements are covered—does this include all data center contracts, only government incentives, or specific categories, which could create unintended consequences
  • Negotiating leverage: Restricting confidentiality may reduce companies' willingness to negotiate with South Dakota or could result in less favorable terms if companies avoid states with mandatory disclosure

Compiled from official sources — confirm details with the bill’s official record.

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