Amazon Ends Data Center NDAs and Commits $1 Billion to Local Communities

Amazon data centers Amazon is ending its use of non-disclosure agreements with county officials and committing $1 billion over the next five years to communities where its data centers are located.

In a blog post published Friday, Amazon CEO Matt Garman outlined the company’s new commitments and said Amazon will no longer use NDAs in its dealings with county officials.

The $1 billion investment will support free community college programs, workforce training, and energy-efficiency improvements in schools, homes, and community buildings.

Amazon responds to backlash over data center expansion

Garman acknowledged the growing backlash against data centers across the United States, saying opposition is hindering the creation of AI infrastructure.

“More than 100 data centers across the country are currently under consideration for temporary suspension,” he wrote. “If these measures go into effect, the United States could be punched on its own losing ticket.” He added that the consequences could last for generations and argued that the country cannot afford to be in that position.

Why data center NDAs have become controversial

Non-disclosure agreements have become a major point of contention during the rapid expansion of data centers. Local government officials who sign NDAs with companies seeking to develop data center projects may be prohibited from sharing information about energy use, water consumption, and other details with the public.

Some agreements have also restricted officials from revealing basic information, including which technology companies are involved in a project. In July, The New York Times reported that secret agreements at multiple levels of government were critical to plans for Hyperion, a massive data center in Louisiana.

States and Congress move to restrict data center secrecy

Several states have recently introduced measures targeting secret administrative procedures related to data centers. Pennsylvania Governor Josh Shapiro, Massachusetts Governor Maura Healey, and Delaware Governor Matt Meyer have issued executive orders addressing data center NDAs.

Recent laws and legislative proposals in states including New York, New Jersey, Indiana, and Ohio also seek to limit the practice, according to the National Conference of State Legislatures.

At the federal level, a bipartisan group of lawmakers introduced the Data Center Secrecy Act in the House. Earlier this week, one of the bill’s sponsors, Rep. Jamie Raskin, D-Md., sent letters to Amazon, Google, Meta, and Oracle requesting information about their use of data center NDAs.

Amazon told The Wall Street Journal that it no longer uses the agreements. Google, Meta, and Oracle did not respond to requests for comment.

Amazon has faced data center NDA controversies

Amazon has been at the center of several disputes involving data center NDAs. In Tucson, Arizona, the company was revealed last year as a tenant in a controversial data center project after a public records disclosure.

A local records request and a later report indicated that an NDA prevented county employees from sharing the identity of the project’s end tenant. Amazon has since withdrawn from the project.

In South Bend, Indiana, where Amazon invested more than $13 billion in a large data center campus, some elected officials said they could not answer questions about the project because they had signed an NDA with the company.