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

Amazon Web Services CEO Matt Garman announced the company has discontinued the use of nondisclosure agreements (NDAs) in its dealings with government agencies while seeking approval to construct new data centers. Garman's statement was part of a broader blog post in which he sought to counter widespread skepticism surrounding data centers and argue that they offer benefits to communities.

NDAs are seen as a key component of the data center controversy, as illustrated by environmental activist Erin Brockovich, who frequently reported that the primary complaint she has received about such projects is a lack of transparency. Typical patterns include announcing projects after permits have been secured, developers who do not respond to inquiries, and local officials signing NDAs before the public became aware of the project.

In response to this backlash, New York has imposed a one-year moratorium on permits for large data centers, with over 100 moratoriums currently under consideration across the United States. Garman argued that if these measures were implemented nationwide, the U.S. could be "writing its own losing ticket to this race," with consequences that could endure for generations.

He also debunked four prevalent myths about data centers: excessive water consumption, increased electricity costs, significant pollution, and negligible community benefits. According to Garman, Amazon's direct data center water usage constitutes only 0.5% of all industrial water usage in the United States, which is substantially less than that of industries like golf courses and almond farming.

He further claimed that electricity rates have risen in some states with numerous data centers while falling or growing at a slower pace in others. Garman further contended that data centers contribute to pollution but are typically idle 99.9% of the time, running for only about 10 hours annually, mainly for maintenance and testing purposes.

Importantly, Garman disclosed that Amazon no longer utilizes NDAs when collaborating with government agencies on its projects. However, it remains to be seen whether these statements will sufficiently alleviate community concerns. Critics like Anthropic CEO Dario Amodei and writer Jasmine Sun argue that the AI backlash is fundamentally a crisis of trust, with people assuming that governments and tech companies are always devising ways to "screw them over."