Can the AI industry persuade data center opponents by getting rid of NDAs?

Amazon and Microsoft have recently announced they will no longer use non-disclosure agreements (NDAs) when negotiating with local governments regarding data centers. In an episode of TechCrunch's Equity podcast, Sean O'Kane, Rebecca Bellan, and Anthony Ha discussed the implications of this move and the reasons behind the backlash against data centers.

O'Kane believes that the industry's poor communication is at the root of many of the problems surrounding data centers. He points out that many issues, such as concerns about property values, electricity bills, and water usage, are often hidden in negotiations, with the public unaware of the specifics until it's too late. He cites the example of Uber's secretive negotiations with local governments to subsidize rides for public transit after Uber trips.

Rebecca Bellan is skeptical about the impact of recent moratoriums on data center projects, noting that they typically only last for a year or two, while actual construction is expected to take two to five years. She questions whether these temporary delays will have a lasting effect on the construction of new data centers.

Anthony Ha mentions a similar moratorium in New York for large projects, which allows for a one-year delay in permits. He believes that the resistance from communities is a sign of concern, but it remains to be seen how long and how deeply this opposition will persist. He also notes that Microsoft made a comparable announcement earlier this year about discontinuing the use of NDAs.

The panel concluded that open communication is crucial for building trust and addressing the apprehensions surrounding data centers. Sean O'Kane emphasizes that the industry needs to improve its ability to explain its intentions and the potential benefits of these projects to the communities they impact.