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7
10-8-95
17-60-509
63G-2-109
0
Data Center Non Disclosure Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Nate Blouin
House Sponsor:
LONG TITLE
General Description:
This bill prohibits certain non-disclosure agreements between prospective data centers and
state and local governments.
Highlighted Provisions:
This bill:
defines terms;
prohibits state agencies, cities, towns, and counties from entering into non-disclosure
agreements with prospective data centers;
provides that prohibited non-disclosure agreements are void and unenforceable;
requires severability of void provisions from other contract terms; and
requires public disclosure of prohibited non-disclosure agreements.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
10-8-95
, Utah Code Annotated 1953
17-60-509
, Utah Code Annotated 1953
63G-2-109
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
10-8-95
is enacted to read:
10-8-95
. Non-disclosure agreements with prospective data centers -- Prohibitions
-- Public disclosure.
(1)
As used in this section:
(a)
"Agent" means an individual or entity acting on behalf of a municipality.
(b)
"Data center" means a facility that:
(i)
is designed or used to house computer servers and associated components,
including data storage devices, networking equipment, and telecommunications
infrastructure; and
(ii)
has a connected electrical load capacity of 20 megawatts or greater.
(c)
"Non-disclosure agreement" means a contract, agreement, or understanding, whether
written or oral, that contains any provision, clause, or language that:
(i)
provides that the contract, agreement, or understanding, or any of the contract's,
agreement's, or understanding's terms, is confidential; or
(ii)
prohibits a municipality or the municipality's agent from disclosing, discussing,
describing, or commenting upon information related to a prospective data center.
(d)
"Prospective data center" means a proposed data center that:
(i)
has not yet received all necessary approvals, permits, or authorizations from the
municipality to commence construction or operation; or
(ii)
is in the process of negotiating with or seeking approvals from the municipality.
(2)
A municipality or an agent of a municipality may not enter into a non-disclosure
agreement with a prospective data center on or after the effective date of this section.
(3)
(a)
A non-disclosure agreement that violates Subsection
(2)
is void and unenforceable.
(b)
If a contract contains a provision that is void and unenforceable under Subsection
(3)(a)
:
(i)
the provision shall be severed from the other provisions of the contract to the
extent that the provision is void and unenforceable; and
(ii)
the remaining provisions of the contract remain enforceable.
(4)
A municipality shall publicly disclose a contract or agreement that violates Subsection
(2)
by:
(a)
posting the contract or agreement on the municipality's website within 30 days after
the day on which:
(i)
the municipality enters into the contract or agreement; or
(ii)
a court determines that the contract or agreement violates this section; and
(b)
maintaining the posted contract or agreement on the municipality's website for at
least five years after the day on which the contract or agreement is posted.
(5)
A resident of a municipality may bring an action in district court to:
(a)
obtain a declaratory judgment that a non-disclosure agreement violates this section
and is void;
(b)
enjoin the enforcement of a non-disclosure agreement that violates this section; or
(c)
compel a municipality to comply with the public disclosure requirement in
Subsection
(4)
.
Section 2. Section
17-60-509
is enacted to read:
17-60-509
. Non-disclosure agreements with prospective data centers --
Prohibitions -- Public disclosure.
(1)
As used in this section:
(a)
"Agent" means an individual or entity acting on behalf of a county.
(b)
"Data center" means a facility that:
(i)
is designed or used to house computer servers and associated components,
including data storage devices, networking equipment, and telecommunications
infrastructure; and
(ii)
has a connected electrical load capacity of 20 megawatts or greater.
(c)
"Non-disclosure agreement" means a contract, agreement, or understanding, whether
written or oral, that contains any provision, clause, or language that:
(i)
provides that the contract, agreement, or understanding, or any of the contract's,
agreement's, or understanding's terms, is confidential; or
(ii)
prohibits a county or the county's agent from disclosing, discussing, describing, or
commenting upon information related to a prospective data center.
(d)
"Prospective data center" means a proposed data center that:
(i)
has not yet received all necessary approvals, permits, or authorizations from the
county to commence construction or operation; or
(ii)
is in the process of negotiating with or seeking approvals from the county.
(2)
A county or an agent of a county may not enter into a non-disclosure agreement with a
prospective data center on or after the effective date of this section.
(3)
(a)
A non-disclosure agreement that violates Subsection
(2)
is void and unenforceable.
(b)
If a contract contains a provision that is void and unenforceable under Subsection
(3)(a)
:
(i)
the provision shall be severed from the other provisions of the contract to the
extent that the provision is void and unenforceable; and
(ii)
the remaining provisions of the contract remain enforceable.
(4)
A county shall publicly disclose a contract or agreement that violates Subsection
(2)
by:
(a)
posting the contract or agreement on the county's website within 30 days after the
day on which:
(i)
the county enters into the contract or agreement; or
(ii)
a court determines that the contract or agreement violates this section; and
(b)
maintaining the posted contract or agreement on the county's website for at least five
years after the day on which the contract or agreement is posted.
(5)
A resident of a county may bring an action in district court to:
(a)
obtain a declaratory judgment that a non-disclosure agreement violates this section
and is void;
(b)
enjoin the enforcement of a non-disclosure agreement that violates this section; or
(c)
compel a county to comply with the public disclosure requirement in Subsection
(4)
.
Section 3. Section
63G-2-109
is enacted to read:
63G-2-109
. Non-disclosure agreements with prospective data centers prohibited.
(1)
As used in this section:
(a)
"Agent" means an individual or entity acting on behalf of a state agency.
(b)
"Data center" means a facility that:
(i)
is designed or used to house computer servers and associated components,
including data storage devices, networking equipment, and telecommunications
infrastructure; and
(ii)
has a connected electrical load capacity of 20 megawatts or greater.
(c)
"Non-disclosure agreement" means a contract, agreement, or understanding, whether
written or oral, that contains any provision, clause, or language that:
(i)
provides that the contract, agreement, or understanding, or any of the contract's,
agreement's, or understanding's terms, is confidential; or
(ii)
prohibits a state agency or the state agency's agent from disclosing, discussing,
describing, or commenting upon information related to a prospective data center.
(d)
"Prospective data center" means a proposed data center that:
(i)
has not yet received all necessary approvals, permits, or authorizations from the
state agency to commence construction or operation; or
(ii)
is in the process of negotiating with or seeking approvals from the state agency.
(2)
(a)
A state agency or an agent of a state agency may not enter into a non-disclosure
agreement with a prospective data center.
(b)
Subsection
(2)(a)
applies to non-disclosure agreements entered into on or after the
effective date of this section.
(3)
(a)
A non-disclosure agreement that violates Subsection
(2)
is void and unenforceable.
(b)
If a contract contains a provision that is void and unenforceable under Subsection
(3)(a)
, that provision shall be severed from the other provisions of the contract to the
extent that the provision is void and unenforceable.
(c)
The fact that a provision is void and unenforceable under Subsection
(3)(a)
does not
affect the enforceability of the other provisions of the contract.
(4)
A state agency shall publicly disclose any contract or agreement that violates Subsection
(2)
by:
(a)
posting the contract or agreement on the state agency's website within 30 days after
the day on which:
(i)
the state agency enters into the contract or agreement; or
(ii)
a court determines that the contract or agreement violates this section; and
(b)
maintaining the posted contract or agreement on the state agency's website for at
least five years after the day on which the contract or agreement is posted.
(5)
A resident of this state may bring an action in district court to:
(a)
obtain a declaratory judgment that a non-disclosure agreement violates this section
and is void;
(b)
enjoin the enforcement of a non-disclosure agreement that violates this section; or
(c)
compel a state agency to comply with the public disclosure requirement in
Subsection
(4)
.
Section 4.
Effective Date.
This bill takes effect on
May 6, 2026
.
2-23-26 9:25 AM