Amazon drops NDAs for data centers, pledges $1B to communities
Original: Amazon Says It's No Longer Using NDAs for Data Centers
Why This Matters
Scaling AI infrastructure hinges on community trust — NDA reform could determine where data centers get built.
Amazon CEO Matt Garman announced Friday the company has stopped using nondisclosure agreements with county officials for data center projects, and will invest $1 billion over five years in host communities for workforce training, community college programs, and energy efficiency upgrades.
Amazon's move comes as community backlash against data centers has produced over 100 proposed moratoriums across the U.S. In a blog post, CEO Matt Garman warned that if enacted, these measures could cost the country its footing in the AI race 'for generations.' NDAs have been a flashpoint: they typically prevent local officials from disclosing energy and water use figures, or even naming the tech company behind a project. Amazon's own past use drew scrutiny in Tucson, Arizona, where a public records request — not official disclosure — revealed Amazon as the tenant of a contested facility. In South Bend, Indiana, elected officials alleged local government employees were unable to answer basic constituent questions due to NDA restrictions.
Amazon told the Wall Street Journal earlier this week it had already stopped the practice. The $1 billion community investment fund will target free community college, workforce training, and efficiency upgrades for schools and homes. The announcement coincides with mounting legislative pressure: governors in Pennsylvania, Massachusetts, and Delaware have issued executive orders curbing data center NDAs, while New York, New Jersey, Indiana, and Ohio are weighing outright bans. At the federal level, the bipartisan No Secrets for Data Centers Act was introduced in the House, and Rep. Jamie Raskin sent letters to Amazon, Google, Meta, and Oracle demanding NDA disclosure. Google, Meta, and Oracle did not respond to the Journal's inquiry.