Amazon stops using NDAs for data centers amid backlash
AWS CEO Matt Garman announces an end to nondisclosure agreements with government agencies for new data center projects.
Stock photo for illustration only, not from the actual event
- AWS stops using government NDAs for data center project approvals
- Over 100 data center moratoriums are currently weighed across the U.S.
- Amazon states data center backup generators sit idle 99.9% of the time
Amazon Web Services is shifting its transparency policy as AWS CEO Matt Garman announced that the company has stopped using nondisclosure agreements (NDAs) in its negotiations with government agencies for new data center developments.
This policy change comes in response to a widespread backlash against data centers. Environmental activist Erin Brockovich recently pointed out that transparency is the chief complaint from communities, noting a recurring pattern where projects are unveiled only after permits are locked in and local officials are bound by NDAs before residents are informed.
Stock photo for illustration only, not from the actual event
The growing resistance has tangible policy consequences, including a one-year moratorium on large data center permits announced by New York. Garman warned that with more than 100 similar moratoriums currently under consideration across the United States, the country risks losing its competitive edge if these restrictions take effect.
Garman also pushed back against four major criticisms regarding water consumption, electricity rates, pollution, and community benefits. He cited internal data showing that direct water consumption by data centers accounts for just 0.5% of all industrial water usage in the United States, far below sectors like golf courses and almond farming.
"We no longer use nondisclosure agreements with the government agencies we work with on our projects."
Matt Garman, AWS CEO
Regarding pollution concerns, such as a planned Texas facility permitted to emit up to 33 million tons of carbon dioxide annually, Garman argued that critics focus solely on permitted maximum caps. In reality, he noted that backup generators remain idle 99.9% of the time, operating only about 10 hours a year primarily for required maintenance testing.
Amazon dropping NDAs highlights a crucial tactical retreat by big tech as local pushback threatens infrastructure pipelines. While secrecy was traditionally used to secure land and power agreements smoothly, it has become the primary catalyst for severe grassroots opposition. Rebuilding public trust will require much deeper systemic changes beyond merely dropping paperwork restrictions.
Over the past three years, Amazon has funneled over $1 billion into communities across the U.S. hosting its data centers. However, overcoming deep-seated skepticism remains an uphill battle, as industry observers note that the tech backlash is ultimately rooted in a profound crisis of trust between the public, tech corporations, and government regulators.
Source: TechCrunch
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