Amazon stops using NDAs for data center permits

Amazon Web Services has stopped using nondisclosure agreements with government agencies when seeking approvals to build new data centers. Amazon Web Services CEO Matt Garman announced the change in a blog post aimed at addressing widespread community suspicion surrounding large computing facilities.

The secrecy tied to nondisclosure agreements has drawn sharp public criticism. Environmental activist Erin Brockovich recently identified lack of transparency as the top complaint, pointing to local officials who sign agreements before residents learn about proposals. Backlash has led New York to impose a one-year moratorium on permits for large data centers, while Garman stated that more than 100 moratoriums are under consideration across the United States.

Garman defended the facilities by challenging claims regarding resource use and local costs. Citing an internal company report, Garman noted that direct data center water consumption accounts for only 0.5% of all industrial water use in the United States. While an independent watchdog linked data centers to a 76% year-over-year power price surge on the largest electrical grid in the country, Garman maintained that electricity rates rose primarily where aging grids lacked prior investment.

Garman also addressed environmental concerns, such as a planned Amazon data center in Texas permitted to release up to 33 million tons of carbon dioxide annually. He said backup generators remain idle 99.9% of the time, operating roughly 10 hours per year mainly for maintenance. To highlight local contributions, Garman said Amazon has invested more than $1 billion over the past three years in United States communities where it maintains a significant data center presence.