Amazon Drops Data Center NDAs, but Communities Still Want Proof
Amazon Drops Data Center NDAs, but Communities Still Want Proof
Earlier this year, Microsoft said it would stop using nondisclosure agreements in negotiations with local governments over data centers. Amazon has now followed suit, abandoning a practice that often kept the terms, beneficiaries and local trade-offs of major AI infrastructure projects out of public view.
The shift arrives after secrecy helped turn data centers into a flashpoint. Communities from New York to San Francisco have pushed proposed or enacted moratoriums, reflecting concerns over water use, electricity bills, property values and the public subsidies attached to projects. For Amazon and Microsoft, dropping NDAs is an acknowledgment that closed-door dealmaking has become a political liability.
But the transparency pledge is not being treated as a cure-all. In a discussion of Amazon’s decision, TechCrunch’s Rebecca Bellan questioned how lasting the moratorium push would be, noting that many pauses run only a year or two while facilities may take far longer to come online. The projects already face delays from zoning and financing, she argued.
Others see the opposition as serious precisely because builders are beginning to respond. The same discussion noted that temporary moratoriums are often framed as time to study the issue rather than permanent rejection—leaving officials room to approve projects later. Yet the companies’ concern is visible in their efforts to change the conversation.
The deeper problem, according to TechCrunch’s Sean O’Kane, is not just secrecy but persuasion. “The industry just does a really poor job explaining itself,” he said, arguing that many residents cannot see how AI infrastructure will benefit them. Ending NDAs may open the door; winning consent will require tech companies to make a far more convincing case once it is open.
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