Amazon Responds to Data Center Backlash, Says It No Longer Uses NDAs

Amazon is following through on fresh efforts to stop the mounting pushback against data center construction in the U.S., including by suspending nondisclosure agreements with government agencies that work on its projects.

Matt Garman, CEO of Amazon Web Services, announced the change Friday as Amazon committed to invest over $1 billion over the next five years for communities hosting the company's data centers. Funds will be used for education, job skills training, water and energy conservation, energy affordability, and other community needs.

The news comes as data center plans face growing scrutiny around the country. Local communities are worried about the sizable use of electricity and water that the facilities that run cloud computing and artificial intelligence consume. According to Reuters, over 100 data center moratoriums are in the pipeline in the US, as technology firms come under more pressure to prove transparency and local value.

Amazon also said it will cease requiring NDAs when working with government agencies for data center projects. Garman told the committee the company will eventually host open houses in the communities where it operates data centers, giving residents a chance to learn more and communicate concerns to Amazon staff.

NDAs are one of the more controversial aspects of the data center debate, as they can prevent local officials from publicly sharing information about a project and the organizations within it, as well as the project's electricity needs and water use. A handful of states and localities have recently taken action to curb the deals.

Amazon additionally said it has been working to help mitigate the impact of its data center infrastructure on local communities. In a Thursday blog post, AWS said it will assume the financial burden of upgrading utility infrastructure at the locations it builds to ensure current residents aren't left to shoulder the costs. Additionally, the company said it plans to be water positive at its data centers by 2030, providing more water to people than it consumes; it is around 75% of the way there.

Garman contended that fast data center growth continues to be crucial as the U.S. fights to stay competitive globally in artificial intelligence. Garman cautioned, "Broad bans or moratoriums can slow infrastructure growth that can support AI and cloud."

Amazon's new strategy: Building trust 1 The tech company is balancing the build-out of AI infrastructure with opposition from residents who live near the centers. End of disclosure requirements – Amazon is opening data center locations to help build trust, ending government non-disclosure agreements and shoring up investments in local communities.