Add §103-i, Gen Muni L; add Art 48 §§1800 & 1801, Gen Bus L
Prohibits municipal corporations from entering into a contract or other agreement that has the purpose or effect of concealing the details of the development of a data center from the public or preventing public review of a data center; prohibits data centers from entering into a contract or other agreement having such purpose; exempts agreements solely intended to protect trade secrets.
STATE OF NEW YORK
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10708
IN SENATE
September 30, 2026
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Introduced by Sen. MAY -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the general municipal law and the general business law,
in relation to prohibiting nondisclosure agreements intended to
conceal information about the development of a data center from the
public or intended to prevent public review thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general municipal law is amended by adding a new
2 section 103-i to read as follows:
3 § 103-i. Prohibition on certain data center agreements. 1. For the
4 purposes of this section, the term "data center" shall mean a facility
5 or proposed facility where:
6 (a) such facility's primary services are storage, management, and
7 processing of digital data; and
8 (b) such facility is used to house computer and network systems,
9 including but not limited to associated components such as servers and
10 network equipment and appliances; telecommunications systems; data stor-
11 age systems; systems for monitoring and managing infrastructure perform-
12 ance, internet-related equipment and services, data connections, and
13 environmental controls; fire protection systems; and security systems
14 and services.
15 2. (a) No municipal corporation shall enter into a contract or other
16 agreement, including a nondisclosure agreement, that has the purpose or
17 effect of concealing the details of the development of a data center
18 from the public or preventing public review of a data center.
19 (b) The provisions of paragraph (a) of this subdivision shall not
20 apply to a contract or other agreement that has the sole purpose of
21 preventing public disclosure of a trade secret.
22 3. No municipal corporation shall permit or approve a project for the
23 creation of a data center if such data center or an agent thereof has
24 violated the provisions of section eighteen hundred one of the general
25 business law, or if such municipal corporation has violated the
26 provisions of subdivision two of this section.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16407-01-6
S. 10708 2
1 § 2. The general business law is amended by adding a new article 48 to
2 read as follows:
3 ARTICLE 48
4 DATA CENTERS
5 Section 1800. Definitions.
6 1801. Prohibited agreements.
7 § 1800. Definitions. For the purposes of this article, the following
8 terms shall have the following meanings:
9 1. "Data center" shall mean a facility or proposed facility where:
10 (a) such facility's primary services are storage, management, and
11 processing of digital data; and
12 (b) such facility is used to house computer and network systems,
13 including but not limited to associated components such as servers and
14 network equipment and appliances; telecommunications systems; data stor-
15 age systems; systems for monitoring and managing infrastructure perform-
16 ance, internet-related equipment and services, data connections, and
17 environmental controls; fire protection systems; and security systems
18 and services.
19 2. "Municipal corporation" means a county, city, town, or village.
20 § 1801. Prohibited agreements. 1. No data center, or any agent there-
21 of, shall enter into any contract or other agreement, including a
22 nondisclosure agreement, that has the purpose or effect of concealing
23 the details of the development of such data center from the public or
24 preventing public review of such data center.
25 2. This section shall not apply to a contract or other agreement that
26 has the sole purpose of preventing public disclosure of a trade secret.
27 § 3. This act shall take effect immediately.
