Comment by dguest

What I've come to realize is that the rust belt states have been in huge trouble for decades.

They were living in "benevolent feudalism" when GM, Ford, etc all had factories there. The problem is that these companies effectively owned the cities in which they operated. And then they left.

Since the Reagan years we decided to export everything that built our economy so the landlords in power could have even more profitable quarters in the short term. What this did however is destroy the economies of the non-software states.

The rust belt states are currently being subsidized by the rich states. This has been going on for decades. This vacuum of power has allowed the new landlords in power to swoop in and play city governments against each other with impunity.

The negotiating power of these states is so poor that they present an opportunity for the Metas of the world to make them even worse while becoming the new "benevolent" landlords. There doesn't need to be an NDA and secrecy, and in theory the city could get a good deal out of it, but realistically their utilities will just be abused because the words "civil rights" and "justice" have exited the lexicon.

Let me give you an anecdote that illustrates why it was needed in Eagle Mountain, Utah. One of my friends works for the city there and he told me about how the development went down.

When the city council first heard that Facebook wanted to build a data center, they shot it down solely because of Facebook's reputation. A year or two later, Facebook proposed the exact same project to the city council, while keeping their name secret under an NDA. Then, when the city council was only considering the economics of it, they jumped at the chance for the tax revenue and infrastructure investment. With essentially the same exact plan as before, one of the council members who rejected it before the NDA said "this is exactly the kind of deal a city should take."

I think in many ways, these companies are fighting their own reputations.

This is a scary argument. Should we also ban car emissions/safety testing, because Volvo's competitors might discern something from the results? Should we also stop FCC certification because competitors might glean information out of a device's radio characteristics?

The local residents, if not the public at large, should have a right to know. If not, then it should go both ways and grocery stores shouldn't be allowed to use tracking because my personal enemies might discern something from the milk brand I'm buying

> I don’t want my competition to know where I’m going, what I’m doing, what pace I’m doing it at

This is likely a misdirection. The "competition" is for the water and power, ie the local communities. This is a NIMBY issue with practical consequences. That's how it has been used in one part of North Dakota. Applied Digital is building in a town (~800 ppl) named Harwood after being unhappy with Fargo tax negotiations. The mayor of Harwood abused an existing agreement with Fargo, which will have to meet the water and power needs of everything in Harwood.

There's more to NIMBY than "thrashing your land."

The US seems to have a "tragedy of the commons" problem when it comes to NIMBYism. Everybody wants X to exist, but X causes some negative externalities for the people living close to it, so nobody wants X build specifically in their back yard, they want it but built somewhere else. Because the US seems to delegate these decisions to a much more local / granular level than Europe does, nobody has the courage to vote "yes", so X never gets build.

Who should decide whether E.G. an airport or a datacenter gets build? Should it just be the people living next to it? Should it be everybody in the relative vicinity who would use its services? Should it be everybody in the country (indirectly through the elected representatives)? I think those are the right questions to ask here.

I wish I had better hard numbers on it but from my experience, it’s not unusual for large buildouts, say for example a manufacturing plant to happen with NDAs until you get at least initial sign offs. Land, county, electric grid, water etc.

There is a component of not wanting the competition know exactly what your doing but also it’s usually better for most parties including the constituents to not know about it until it’s at least in a plausible state. Thought differently, it’s not even worth talking about with the public until it’s even a viable project.

A palpable fear in Wisconsin is access to water. Another is the potential abuse of eminent domain.

When Foxconn made a deal with the state to build a factory for large screen TVs, water was a major part of the deal. They were given an exemption on obeying state environmental laws. They also condemned farms and properties in order to buy the land from owners who didn't want to sell it.

A potential further reason for secrecy is that water use in the Great Lakes watershed is governed by a treaty with Canada, and the people in the Great Lakes region are quite united on being protective of our water even when we disagree on a lot of other political issues.

The concern is that the sellers can ratchet up their asking price if a deep pocketed buyer is known. Walt Disney used a bunch of shell companies to buy up land in Florida. If property owners knew he was buying, they'd ask for much more.

Secrecy in real estate negotiations is common enough that it's an exemption in many state FOIA laws.

This stuff is happening like 10 miles away from where I live and there's absolutely a ton of local pushback, mostly justified, but there's also a lot of propaganda. The pushback in DeForest, in particular, got a ton of attention on local subreddits and facebook groups and had a ton of drama at city counsel meetings. People do not want these datacenters here.

I'd be willing to bet it's largely driven by NIMBY concerns as this type of stuff can end small-time political careers.

Data centers raise electricity bills and use too much ground water. Due to the AI bubble more data centers need to be built in areas that cannot support these facilities, deregulation, investor and political pressure ensures this, i.e. corruption. The last remaining spots are near residential areas. So people are pissed because of:

* noise pollution, infrasound from HVAC travelling long distances making people sick

* power outages priorizing data centers at the expense of residentials

* rising electricity bills

* rising water bills

Idk why it's hard to believe another company would try to outbid.

Discovering good locations for data centers is genuinely a difficult problem. They're relatively scarce. Bidding wars seem completely plausible.

Well it makes sense for the company to demand it, but for the community / municipality it only makes sense if they believe someone else will sign such a secrecy deal, because if their location is so good, advertising it would generate bidding war and they'd get more money.

So it depends on the game theory but with coordination on the municipalities doing it in the open should generate higher demand.

Governments should not be allowed to make deals that are kept secret from the people; the government is an arm of the people.

> "your community is a pawn in a 5d chess game, better that you don't know".

This is literally called arbitrage, were there is a price difference between the the people pricing it and what the benefit is to the people buying it.

If I have information that you do not have, that indicates that underneath your land there is a gold mine, then I’m going to offer you whatever you think you’re value of your land is worth without telling you that there’s a gold mind underneath it so that I can exploit the difference in information.

That’s the entire concept behind modern economic theory, specifically trade arbitrage. That’s precisely what it is and that’s exactly the point from Meta.

> Whereas everyone here seems to assume it's to avoid NIMBY

Literally every data center project that gets announced near me gets protested at council meetings, petitioned, and multiple series of reddit/bluesky posts about the project.

It's hard to put into words for HN how deeply locals resent tech companies and AI. You could call it NIMBY, but the hatred is deeper than that.

The sentiment is "you have enough money, go away. Your business is fundamentally bad."

The elected representation agreed to this, and a with a bit of imagination, you can list a few reasons for exercising an NDA before a vote:

- Avoid the large and well-funded network of professional activists in the US from sabotaging the property and injuring locals - Avoid local political actors from spreading fear and misinformation just for the sake of grandstanding. - Avoid activist attorneys and judges from across the country, some paid by competitors, to create endless frivolous legal obstacles

We need an acronym like NIMBY but when it’s obnoxious progressive hedge fund managers and tech-rich psychopaths who live in some toxic coastal city who don’t want it in your own back yard a thousand miles away.