Amazon Joins Microsoft in Dropping Data Center NDAs

Amazon has announced it will no longer utilize nondisclosure agreements (NDAs) when negotiating data center projects with local governments, as TechCrunch first reported. The move follows a similar announcement made by Microsoft earlier this year.

The shift comes as the AI industry faces increasing friction from local communities. TechCrunch reports that a significant number of data center moratoriums have been passed, including a recent one in San Francisco and a one-year permit moratorium on large projects in New York. While some of these delays are temporary—the New York moratorium lasts until a state environmental review is finalized—industry backers remain concerned about the depth of community resistance.

Sean O’Kane of TechCrunch suggests the backlash is rooted in a broader communication failure within the tech sector, noting that projects are often negotiated in secret. This lack of transparency has led to public anxiety regarding water usage, electricity bills, and property values. O’Kane compares the current environment to the mid-2010s expansion of Uber, which he claims frequently used secret negotiations to secure tax subsidies.

While Rebecca Bellan of TechCrunch notes that many data centers would not have come online for several years regardless due to funding and zoning issues, the move to eliminate NDAs is viewed as a strategic attempt to reduce regulatory friction. By removing the secrecy of negotiations, Amazon and Microsoft aim to address the primary grievance of opponents who argue they cannot support projects they do not understand.