Amazon ends nondisclosure agreements for data center deals, pledges $1B community investment

Amazon announced it will no longer use nondisclosure agreements with county officials in data center deals, according to a blog post from CEO Matt Garman. The company framed the change as part of a broader effort to address community backlash that has contributed to more than 100 data center moratoriums being considered nationwide.

Garman also announced a $1 billion investment over the next five years in communities hosting Amazon’s data centers. The funds will support free community college programs, workforce training, and energy efficiency upgrades for schools, homes, and community buildings.

The company acknowledged that local opposition to data centers is hampering the broader AI buildout in the U.S., with Garman warning that moratoriums could put the country at a long-term disadvantage in the AI race.

NDAs have been a flashpoint in data center development, often preventing local officials from disclosing basic details about projects, including the companies involved and their resource use. Recent reporting has highlighted how NDAs obscured the involvement of major tech firms in specific projects, such as Amazon’s data center in Tucson, Arizona.

The shift follows actions by state leaders and federal lawmakers to curb NDAs. Governors in Pennsylvania, Massachusetts, and Delaware have issued executive orders restricting NDAs, and bipartisan legislation—the No Secrets for Data Centers Act—has been introduced in the U.S. House.

Amazon’s announcement comes after reporting revealed the company was the secret tenant of a controversial data center in Tucson, where an NDA had barred county officials from identifying the end tenant. Amazon has since exited that project.