The proposed bill, known as the "data center transparency act," aims to prohibit certain elected officials from entering into nondisclosure agreements related to the construction of data centers in exchange for tax incentives. Specifically, if a political subdivision, such as a county or city, contracts with a data center owner for construction, neither the owner nor any elected official from that subdivision can engage in a nondisclosure agreement that keeps the construction details confidential. However, the bill allows for the redaction of information pertaining to the intellectual property of the data center, and it ensures that certain state entities, including the attorney general and the executive office of the governor, can review any redacted information.

Additionally, the bill stipulates that any nondisclosure agreement entered into, amended, extended, or renewed after the effective date of the act that violates its provisions will be considered against public policy and thus void and unenforceable. The act will only take effect if a series of related bills from the 103rd Legislature are also enacted into law.