Amazon and others are done keeping data center deals secret. Is it enough to build trust?
◆ The brief
Amazon has announced it will stop using non-disclosure agreements, or NDAs, when negotiating data center deals with local governments. This follows a similar move made by Microsoft earlier this year to increase transparency in local infrastructure planning. Historically, tech giants used strict secrecy agreements to negotiate quietly with towns and cities for massive data center projects. However, this secrecy fueled severe community backlash, with local residents organizing protests and blocking hundreds of proposed developments over concerns about water and electricity use. Data centers require immense amounts of energy to train and run artificial intelligence models, straining local power grids. By dropping NDAs, companies hope to build trust and smooth the approval process by being upfront with local communities. This policy shift acknowledges that building the physical infrastructure for the AI boom cannot happen entirely behind closed doors. Local governments and citizens will now have a clearer view of what tech companies are planning to build in their neighborhoods.
◆ Key points
- 01Amazon stopping use of NDAs for data center deals
- 02Microsoft made a similar transparency move earlier this year
- 03Secrecy previously fueled heavy community and political backlash
- 04Aims to build trust over AI infrastructure demands
Data centers consume massive amounts of energy and water, leading to intense local backlash. Dropping secret agreements is an attempt by tech giants to win over skeptical communities.