Tim Mathern Proposes AI Data Center Moratorium and NDA Ban

North Dakota Senator Tim Mathern introduced legislation during a special session in Bismarck to regulate artificial intelligence data centers and restrict the use of non-disclosure agreements (NDAs) by public officials. Mathern proposed a moratorium on new AI data centers and a ban on NDAs for public officials, though he included amendments to allow private negotiations regarding transmission lines and utility activities.

As part of the data center proposal, Mathern seeks to eliminate sales tax exemptions for equipment, which currently total $16 million annually. He argued that these funds are needed for public projects, specifically a proposed $30 million veteran's wing at the Heritage Center, and warned that continuing the exemptions would force property and income taxes to rise.

Casselton City Councilman Sam Wagner testified before the legislature in support of the NDA ban, stating that no official should be permitted to sign such agreements.