Amazon Stops Secret Deals for Data Centers After Backlash

Amazon Web Services (AWS) announced it will stop using nondisclosure agreements (NDAs) with government agencies when planning new data centers. NDAs are legal contracts that keep details secret. This move follows growing backlash from communities worried about data centers' impact on water, electricity, and pollution. Amazon's CEO Matt Garman said the company wants to be more transparent and argues that data centers are actually good for local areas.

Data centers are huge buildings full of computers that power AI and the internet. They use a lot of water and electricity, and can increase pollution. Many towns have pushed back, with over 100 moratoriums (temporary bans) on new data centers being considered across the U.S. New York recently enacted a one-year ban on permits for large data centers. Amazon claims its data centers use only 0.5% of industrial water in the U.S., and that they create jobs and tax revenue. But independent watchdogs say data centers have driven up electricity prices by 76% on the largest U.S. grid.

Amazon's promise to stop using NDAs is a small step toward transparency. But critics remain skeptical. Environmental activist Erin Brockovich said transparency is the top complaint she hears. And Anthropic CEO Dario Amodei called the AI backlash 'a crisis of trust.' People often don't believe tech companies' claims. Without independent data, it's hard to verify Amazon's statements about water and energy use. The real test will be whether communities now get a real say in projects that affect their daily lives.