Amazon Ends NDAs in Data Center Push as Backlash Grows

Amazon’s pledge and the broader backlash

In a blog post aimed at calming rising suspicion, Amazon Web Services chief Matt Garman announced that the company will no longer require nondisclosure agreements with government agencies when pursuing new data center projects.

Matt Garman, AWS CEO: “We no longer use nondisclosure agreements with the government agencies we work with on our projects.”

The announcement comes as data centers face intensifying criticism. Environmental advocate Erin Brockovich summed up the prevailing grievance, noting that the top complaint she hears is a lack of transparency, with projects often unveiled only after permits are secured, developers ignoring inquiries, and local officials signing NDAs before neighbors even learn of the plans.

Erin Brockovich: “projects announced after permits are already secured, developers who don’t return calls, local officials who signed NDAs before their neighbors knew a project was being considered.”

That sentiment has spurred policy action. New York recently imposed a one‑year moratorium on permits for large data centers, and Garman says more than 100 similar moratoriums are under consideration across the United States.

Matt Garman: “If these measures are enacted, the U.S. could be writing its own losing ticket to this race, and the consequences would last generations.”

Four myths Amazon says it’s debunking

Water use

Amazon points to its own reporting to argue that data centers are not the water hogs critics portray. The company says “direct data center water consumption” accounts for just 0.5 percent of all industrial water use in the United States—far less than golf courses, almond farming, and many other sectors.

Matt Garman: “direct data center water consumption only accounts for 0.5% of all industrial water usage in the United States, orders of magnitude less than golf courses, almond farming, and many other industries.”

Nvidia recently claimed its new cooling system eliminates “pretty much all water usage” inside the data center, but observers note that such claims overlook the water needed for electricity generation and chip manufacturing. Scientists say independent studies are needed because there are no federal or state rules requiring tech firms to disclose their water and energy use.

Electricity costs

Garman argues that electricity rates are not uniformly rising because of data centers. He notes that rates have climbed in some states with many facilities while falling or rising more slowly elsewhere. When rates do increase, he blames aging grids that lacked investment before demand arrived.

An independent watchdog, however, recently identified data centers as the primary driver behind a 76 percent year‑over‑year price spike on America’s largest electrical grid.

Pollution

Critics focus on the maximum emissions allowed under permits, Garman contends. He cites a planned Amazon data center in Texas that is permitted to release 33 million tons of carbon dioxide annually—more than any other power plant in the country.

The NAACP is currently suing Elon Musk’s SpaceX/xAI over pollution concerns, underscoring the broader legal pressure on the sector.

Garman counters that the generators powering these facilities run only about ten hours each year, mostly for maintenance testing, and are idle 99.9 percent of the time.

Matt Garman: “The truth is data center generators almost never run. They’re idle 99.9% of the time (they run roughly 10 hours per year, mostly for required maintenance testing).”

Community benefits

Beyond addressing misconceptions, Amazon highlights its contributions to local economies. Over the past three years, the company says it has invested more than $1 billion in U.S. communities where it maintains a meaningful data center presence.

Will the new stance calm public distrust?

Even with the NDA pledge, skepticism runs deep. Anthropic chief Dario Amodei recently described the AI backlash as “fundamentally a crisis of trust,” arguing that people assume governments and tech firms are always “cooking up some new way to screw them over.”

Dario Amodei, Anthropic CEO: “the AI backlash is fundamentally a crisis of trust, where people assume governments and tech companies are always cooking up some new way to screw them over.”

Writer Jasmine Sun observed that when opponents of data centers are presented with the companies’ arguments, their typical response is simply, “I don’t believe them.”

Jasmine Sun: “I don’t believe them.”

Whether Amazon’s transparency push and community investments will be enough to reverse the tide remains an open question. The debate over data centers now pivots not only on their environmental impact but also on whether the public can trust the companies building them.