Delaware Senate Bill SB312

Delaware 2025-2026 Regular Session

• Introduced: 5/11/26
• Refer: 5/11/26

Caption

An Act To Amend Title 9, Title 22, And Title 29 Of The Delaware Code Relating To Data Centers.

Summary

SB 312 prohibits Delaware state agencies, counties, and municipalities from using nondisclosure agreements to keep the public from learning about potential or actual large-scale data center development. The bill defines a large-scale data center as one that uses or can use 100 megawatts of power or more, and it defines nondisclosure agreements broadly to include confidentiality clauses, secrecy provisions, side letters, memoranda of understanding, and settlement agreements. The measure applies to three parts of Delaware law: Title 9 for counties, Title 22 for municipalities, and Title 29 for state agencies. In each case, any agreement that prevents disclosure of information to the public about large-scale data center development would be against public policy and void and unenforceable. The bill is aimed at ensuring that local and state governments cannot hide information from residents about major data center projects that may affect communities.

Impact

SB 312 would change Delaware law by creating explicit statutory limits on nondisclosure agreements entered into by counties, municipalities, and state agencies in connection with large-scale data center development. It would make any conflicting NDA provision void and unenforceable as a matter of public policy, thereby increasing transparency obligations for public bodies and limiting their ability to negotiate confidentiality around these projects. The practical effect would be to require disclosure of information about proposed or actual large-scale data centers to the public, while leaving ordinary data center projects below the 100-megawatt threshold outside the bill’s scope.

Sentiment

The bill appears to have a generally pro-transparency and community-protection orientation, based on its synopsis and structure. The stated rationale is that large-scale data centers can create significant local impacts, and residents should not be kept in the dark about projects that may affect land use, infrastructure, power demand, and community planning. No committee transcript or vote record was provided, so there is no documented recorded opposition or support in the supplied materials beyond the bill’s sponsorship and stated purpose.

Contention

The main point of contention is likely the balance between public transparency and the use of confidentiality in economic development negotiations. Supporters would emphasize the public’s right to know about major data center proposals and the potential burdens on communities, while critics may argue that banning NDAs could make it harder for governments to negotiate with developers or protect sensitive business information. Another possible issue is the bill’s 100-megawatt threshold, which creates a bright-line rule that may be seen as either appropriately targeted at very large projects or as underinclusive if smaller facilities also have meaningful local impacts.