Limitation on judicial enforceability of predispute nondisclosure contract clauses relating to the building of data centers

(a) In general With respect to the building of a data center, a covered predispute nondisclosure clause shall be void and unenforceable in judicial and arbitration proceedings. (b) Limitation on public incentives A data center operator may not receive any public incentive that is conditioned on consent to prohibit, restrict, or penalize disclosure of information related to the building of a data center. (c) Definitions For purposes of this Act: (1) Nondisclosure clause The term nondisclosure clause means a provision in a contract or agreement that requires 1 or more parties to the contract or agreement not to disclose or discuss conduct, the existence of a settlement involving conduct, or information, covered by the terms and conditions of the contract or agreement. (2) Predispute nondisclosure clause The term predispute nondisclosure clause means a nondisclosure clause agreed to before a lawsuit is filed under Federal, State, or Tribal law. (3) Covered predispute nondisclosure clause The term covered predispute nondisclosure clause means a predispute nondisclosure clause in a contract or agreement— (A) with respect to which a public official is a party in that person’s capacity as a public official; or (B) that contains a provision related to public funds, public land, or a public incentive. (4) Data center The term data center means— (A) any facility that— (i) primarily contains electronic equipment used to process, store, and transmit digital information; and (ii) has a maximum rated power capacity or projected peak power load of greater than 50 megawatts; or (B) any group of facilities— (i) the majority of which primarily contain electronic equipment used to process, store, and transmit digital information; and (ii) that, in the aggregate, have a maximum rated power capacity or projected peak power load of greater than 50 megawatts. (5) Data center operator The term data center operator means any person or government entity that builds or operates a data center or purchases data center services, equipment, and facilities. (6) Public official The term public official means an individual who, at the time a contract or agreement is agreed to, is an officer or employee of a Federal, State, Tribal, or local unit of government in the United States. (7) Public incentive The term public incentive includes a tax incentive, payment in lieu of a tax assessment, a tax abatement, a bond, a note, a loan, a grant, or a rebate, issued by a Federal, State, Tribal, or local government entity. (d) Applicability This Act shall only apply with respect to a claim that is filed under Federal, State, or Tribal law on or after the date of the enactment of this Act. (e) Rules of construction Nothing in this Act may be construed— (1) to prohibit a State or locality from enforcing a provision of State law governing nondisclosure clauses that is at least as protective of the right of an individual to speak freely, as provided by this Act; or (2) to prevent the filing of information related to the building of a data center on a confidential basis with a public utility commission or any other similar State agency that regulates utilities, which filing is not for the purpose of the receipt of a public incentive.