Seattle — Amazon Says It No Longer Uses NDAs for Data Centers

Amazon Web Services CEO Matt Garman said Oct. 3 that the company has stopped using nondisclosure agreements in its dealings with government agencies as it seeks permits for new data centers, a response to criticism that secrecy around site selection has fueled local opposition, TechCrunch reported. The statement came in a single sentence inside a longer blog post in which Garman tried to rebut what he called myths about water use, electricity prices, pollution, and community benefit tied to the facilities.

Why did Amazon drop NDAs with governments?

Nondisclosure agreements have become a flashpoint in local fights over data center siting. Environmental activist Erin Brockovich said the top complaint she hears about these projects follows a pattern: "projects announced after permits are already secured, developers who don't return calls, local officials who signed NDAs before their neighbors knew a project was being considered," according to the TechCrunch report. Garman's one-line disclosure that Amazon no longer uses the agreements with government counterparties is an attempt to address that specific grievance, though the blog post did not detail when the policy changed or whether it applies retroactively to existing contracts.

How widespread is the data center backlash?

Garman said more than 100 data center moratoriums are currently under consideration across the United States. New York has already announced a one-year moratorium on permits for large data centers, TechCrunch reported. Garman framed the stakes in national-competitiveness terms:

"If these measures are enacted, the U.S. could be writing its own losing ticket to this race, and the consequences would last generations. As a country, we can't afford to find ourselves in that position."

The remark does not name a specific economic figure tied to the moratoriums, and TechCrunch did not report one.

Do data centers really use 0.5% of U.S. industrial water?

Citing an Amazon-produced report on its own water usage, Garman said direct data center water consumption accounts for 0.5% of all industrial water usage in the United States — "orders of magnitude less than golf courses, almond farming, and many other industries," he said, per TechCrunch. The outlet noted that figure, like a separate Nvidia claim that its newest cooling system eliminates "pretty much all water usage" inside a data center, omits the water consumed upstream in electricity generation and chip manufacturing. TechCrunch also reported that scientists say water and energy usage need independent study because no federal or state rule currently requires tech companies to report that data.

Are data centers raising electricity rates?

Garman said electricity rates have risen only in some states with large data center footprints, while rates have fallen or grown more slowly elsewhere, TechCrunch reported. He attributed rate increases, where they occur, primarily to aging grid infrastructure that was not expanded ahead of new demand rather than to the data centers themselves. That account conflicts with a finding TechCrunch cited from an unnamed independent watchdog, which said data centers were the main driver behind a 76% year-over-year price increase on the largest electrical grid in the United States. The two claims were not reconciled in the source material, and no single grid operator's rate filing was cited by either side in the reporting.

What pollution and community-benefit claims is Amazon making?

Garman's post also pushed back on claims that data centers emit significant pollution and provide no benefit to the communities that host them, according to TechCrunch, though the excerpted reporting cuts off before detailing Amazon's specific pollution figures. The outlet noted that the NAACP is currently suing Elon Musk over pollution tied to a separate data center operation, underscoring that litigation and regulatory scrutiny over emissions is already active in at least one high-profile case, even as Amazon argues its own facilities are being mischaracterized.

What happens next for data center permits?

With more than 100 moratoriums reportedly pending nationwide, the near-term outcome will play out in state legislatures and local permitting boards rather than in corporate blog posts. Garman's NDA disclosure addresses one procedural complaint — secrecy before public notice — without resolving the underlying disputes over water accounting, electricity pricing, and emissions data that TechCrunch found remain contested between Amazon and outside researchers, watchdogs, and advocacy groups.

Artiglio is A coming-soon iPhone chief of staff for briefings and drafts. Not on the App Store yet.