Amazon Web Services (AWS) has officially ceased using nondisclosure agreements (NDAs) with government agencies during the approval process for new data center projects, responding to mounting criticism over corporate secrecy and local community impacts.
The policy shift was outlined by AWS CEO Matt Garman in a broader blog post aimed at addressing widespread suspicion surrounding data center developments. Garman confirmed that AWS no longer enters into secrecy agreements with local authorities, addressing a core grievance among community advocates. Environmental activist Erin Brockovich recently emphasized that transparency remains the leading concern for residents, pointing out recurring patterns where data centers are revealed only after permits are approved, developers stay unreachable, and local officials are barred by NDAs from alerting their communities.
The decision comes approximately six months after competitor Microsoft adopted a similar approach, and closely follows an inquiry initiated by U.S. Representative Jamie Raskin, Ranking Member of the House Judiciary Committee. Raskin launched a probe into Amazon, Google, Meta, and Oracle over their reliance on NDAs, determining that Amazon’s agreements restricted officials from sharing broadly classified confidential information. Concerns were also raised regarding Amazon’s use of shell companies to obscure its involvement in proposed projects, an issue Garman’s post did not directly resolve.
Public pushback has led New York to institute a one-year moratorium on permits for large-scale data centers, while more than 100 similar moratoriums are under active consideration across the country. Garman warned that halting infrastructure progress could weaken the nation’s competitive position, arguing that such delays would bring lasting consequences across generations.
Addressing environmental and resource debates, Garman challenged major criticisms regarding water consumption, power costs, emissions, and community utility. According to Amazon’s data, direct data center water consumption represents 0.5% of total U.S. industrial water usage, far below sectors such as golf courses and almond agriculture. While technology firms like Nvidia have highlighted cooling solutions that significantly reduce internal water use, researchers have noted that reported figures often exclude the heavy water demand required for electricity generation and semiconductor manufacturing, urging independent assessments due to the absence of standardized reporting mandates.
Regarding utility strains, Garman attributed rising electricity rates in certain regions to aging power grids and insufficient pre-demand infrastructure investment rather than data center operations alone. However, an independent market monitor recently cited data centers as the primary driver behind a 76% year-over-year price spike on America’s largest electrical grid.
To improve local relations, AWS introduced “Built Together,” a $1 billion community initiative targeted at U.S. localities. The company committed to covering infrastructure upgrade costs to prevent residential utility increases, working with municipalities on tax distribution, supporting local nonprofits, generating local employment, and implementing energy- and water-efficient facility designs.
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