This bill aims to prohibit local elected officials in Minnesota from entering into nondisclosure agreements that restrict public disclosure of information regarding potential data center developments within their political subdivisions. It introduces a new section, designated as [471.372], which defines key terms such as "data center" and "local government." The bill specifies that any nondisclosure agreement or contract that violates this prohibition is considered void and unenforceable. Additionally, if such a provision exists within a contract, it must be severed, allowing the remaining provisions to remain intact.

Furthermore, the bill mandates that if a local government does enter into a contract that violates the nondisclosure restriction, it is required to publicly disclose that contract. The effective date for this legislation is set for August 1, 2026, applying to agreements made on or after that date. This legislation seeks to enhance transparency in local government dealings related to data center developments.