A North Dakota lawmaker is calling for a pause on one of the nation's fastest-growing industries before additional projects get the green light.
Tim Mathern, a Democratic state senator from Fargo, wants North Dakota to temporarily stop approvals of new data centers and prohibit public officials and government employees from signing NDAs with developers, saying communities need more time and transparency before projects proceed.
Here's what to know
According to WDAY Radio Now, Mathern described a two-part plan during a radio appearance: a one-year statewide pause on licensing new data centers and a ban on NDAs between developers and public-sector negotiators.
He said the proposed delay is intended to give local governments a chance to assess a fast-expanding industry.
"We have 4,000 data centers now around the country, probably going to have 4,000 more in terms of this industry and how it's developing," he said, as the outlet reported.
He added that the goal is "stopping it for a while, giving local political subdivisions time to catch their breath, time to get the data, and time to make good decisions."
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Mathern presented the proposals as a response to growing concern about how major projects are reviewed and approved.
More background
Among the issues Mathern cited were tax breaks for developers, eventual site cleanup costs, heavy water use during drought conditions, and the long-term demand for electricity.
Those issues can directly affect residents, particularly in places where new industrial facilities compete with other community needs. Large data centers can reshape local infrastructure planning, put added pressure on utilities, and raise questions about whether taxpayers are getting enough in return for the public resources involved.
According to WDAY Radio Now, Mathern also pointed to a controversial data facility that was approved to be built near schools and said local officials and residents faced a "lack of information" before it was approved.
The NDA proposal is paired with the moratorium. For Mathern, the issue is not only where data centers are located but also how decisions about them are made.
What's being done?
At the state level, Mathern's proposed solution is a temporary freeze paired with stricter rules for public negotiations. In his view, a one-year moratorium would give communities breathing room to gather information, assess resource demands, and determine whether existing review processes are sufficient.
The NDA ban would aim to make those discussions more visible to the public. If government officials cannot agree on confidentiality provisions with developers, residents may have a better chance of understanding proposed incentives, infrastructure needs, and siting concerns before permits move forward.
He said North Dakota's mix of resources and climate makes the state attractive for data center development, but that communities still need to keep pace with that growth.
"North Dakota is going to be prime real estate for data centers," Mathern added. "We have energy, we have electricity, we have water, and we have cold temperatures. However, I don't want us to become the wasteland for the country."
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