Amazon Ends NDA Practice Amid Growing Data Center Backlash
Amazon Web Services CEO Matt Garman announced that the company has stopped using nondisclosure agreements (NDAs) in its dealings with government agencies as it pursues approval to build new data centers. The disclosure, first reported by Wired, marks a notable shift in how the cloud giant engages with local communities at a time of mounting scrutiny.
A Single Sentence in a Broader Defense
Garman's acknowledgment of the NDA change amounts to just one sentence within a longer blog post published on Amazon's corporate site. In that post, he pushes back against widespread suspicion of data centers and argues they deliver real benefits to the communities that host them. The move signals that Amazon is attempting to reposition itself as more transparent as public resistance intensifies.
Why NDAs Are at the Center of the Controversy
NDAs have become a flashpoint in the broader backlash against data center expansion. Environmental activist Erin Brockovich recently said the number one complaint she hears about data centers is a lack of transparency. She described a recurring pattern: projects announced only after permits are already secured, developers who do not return calls, and local officials who sign NDAs before their neighbors even know a project is under consideration.
The secrecy has fueled organized opposition across the country. In 2026, New York State announced a one-year moratorium on permits for large data centers. According to Garman, more than 100 data center moratoriums are currently being considered across the United States.
"If these measures are enacted, the U.S. could be writing its own losing ticket to this race, and the consequences would last generations," Garman wrote. "As a country, we can't afford to find ourselves in that position."
Garman Takes Aim at Four 'Myths'
In his post, Garman attempts to debunk what he describes as four major myths about data centers:
- That they consume too much water
- That they drive up electricity costs
- That they emit enormous amounts of pollution
- That they provide no benefits to their communities
The Water Usage Debate
Citing Amazon's own sustainability reporting, Garman said "direct data center water consumption" accounts for only 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 it is eliminating "pretty much all water usage" inside its data centers. However, such claims tend to overlook the broader water footprint tied to electricity generation and chip manufacturing. Scientists have also called for independent study of data centers' water and energy usage, noting the absence of federal or state requirements governing how tech companies report this data.
Electricity Rates and Grid Strain
On electricity prices, Garman said rates have risen only in some states with large concentrations of data centers, while declining or growing more slowly in others. He argued that "in instances where energy rates are going up, it's primarily because the grid is old and hasn't been invested in and expanded before the demand arrived."
Critics dispute that framing. An independent watchdog recently identified data centers as the main driver behind a 76% year-over-year price increase on America's largest electrical grid.
Pollution Concerns
Pollution remains another major point of contention. Emissions from data center power sources, including on-site generators, have drawn legal challenges and regulatory scrutiny in 2026. Critics argue that the rapid buildout of AI infrastructure risks locking in fossil fuel dependence at precisely the moment decarbonization goals demand the opposite.
The Stakes for 2026 and Beyond
The confrontation over data centers comes as demand for AI compute continues to surge. Cloud providers, chipmakers, and AI developers are racing to secure land, power, and water—often in communities that feel blindsided by the pace and scale of development. With more than 100 moratoriums under consideration nationwide, the industry faces a pivotal test: whether it can rebuild public trust fast enough to keep building.
Amazon's decision to abandon NDAs may be a first step. Whether it meaningfully changes the dynamics on the ground—or remains a single sentence in a corporate blog post—will likely be determined in the months ahead.
via TechCrunch AI