AWS says it has stopped using NDAs as Amazon answers data center backlash

Amazon Web Services CEO Matt Garman said the company has stopped using nondisclosure agreements with government agencies as it seeks approvals for new data centers. The statement appeared inside a broader Amazon post aimed at countering suspicion around data center projects and arguing that they can benefit communities.

The transparency issue matters because NDAs have become a flashpoint in local opposition. The article notes concerns that some projects are revealed only after permits are secured or after officials have signed confidentiality agreements.

The backlash extends beyond NDAs to questions about water use, electricity rates, pollution and whether host communities see meaningful benefits. TechCrunch reports that New York announced a one-year moratorium on permits for large data centers, and Garman said more than 100 data center moratoriums are being considered across the United States.

Garman warned that such measures could hurt the U.S. position in the data center race. The broader takeaway for readers: approval battles are increasingly about trust, not just infrastructure capacity.

Garman argued that data centers are surrounded by four major myths: that they use too much water, raise electricity costs, emit enormous pollution and provide no community benefits. Citing Amazon’s own water report, he said direct data center water consumption accounts for 0.5% of industrial water use in the United States.

The article also notes counterpoints: water claims may not include broader water use tied to electricity generation and chip manufacturing, and researchers have called for independent study because reporting requirements are limited. On electricity costs, Garman said grid underinvestment is often the core problem, while TechCrunch cites a watchdog that blamed data centers for a 76% year-over-year price increase on America’s largest electrical grid.

Amazon said it has contributed more than $1 billion over three years to U.S. communities where it has a meaningful data center presence. Garman also said data center generators are idle 99.9% of the time, pushing back on criticism tied to permitted emissions levels.

Still, TechCrunch frames the question as whether these arguments will be enough to reduce community suspicion. The article points to a broader AI backlash described as a crisis of trust, where some opponents simply do not believe tech companies’ assurances.