Amazon responds to data center backlash, says it no longer uses NDAs

Amazon Web Services (AWS) has stopped using non-disclosure agreements (NDAs) in its dealings with government agencies for new data center projects, a significant policy shift announced by CEO Matt Garman. The move is a direct response to a growing public and regulatory backlash fueled by transparency concerns. With activists like Erin Brockovich highlighting secrecy as a top community complaint and over 100 data center construction moratoriums being considered across the U.S., AWS is making a calculated effort to appease local officials and residents who feel left in the dark about massive infrastructure projects in their backyards.

Defending the Data Center Footprint

In a broader defense of data centers, Garman aimed to counter what he termed four major myths surrounding their community impact. He argued against claims that they consume excessive resources, increase electricity costs, cause significant pollution, and fail to provide local benefits. While critics often point to the massive water and power requirements for cooling and operations, Garman's counter-arguments rely on specific, company-reported data.

• Water Usage: Garman states that direct data center water consumption accounts for only 0.5% of all U.S. industrial water usage. However, this figure is contested by scientists who note it often excludes the substantial water used in electricity generation needed to power the facilities.
• Electricity Costs: The AWS CEO blames rising energy rates on aging grid infrastructure, not data center demand. This contrasts with findings from independent watchdogs who identified data centers as the primary driver behind a 76% price increase on America's largest electrical grid.
• Pollution: Addressing pollution concerns, such as a Texas facility permitted to emit 33 million tons of CO2 annually, Garman claims the diesel generators responsible are idle 99.9% of the time and are used almost exclusively for maintenance testing.

The core challenge for Amazon and its peers is not just presenting data, but overcoming deep-seated public mistrust. As Anthropic CEO Dario Amodei noted, the AI backlash is fundamentally a “crisis of trust,” where communities assume corporations and governments are concealing negative impacts. Garman warned that if the wave of proposed moratoriums is enacted, the U.S. risks forfeiting its lead in the global AI race, with consequences that could last for generations. Dropping NDAs is a first step, but rebuilding public confidence remains a steep, uphill battle for an industry whose physical expansion is critical for future growth.

Amazon’s decision to drop NDAs is less about pure transparency and more a strategic necessity. With over 100 potential building moratoriums threatening the physical infrastructure expansion required for AI dominance, AWS is attempting to de-escalate public opposition and preempt costly regulatory roadblocks that could cede ground to competitors.