AWS CEO says company no longer uses NDAs with government agencies amid data center backlash

Amazon Web Services CEO Matt Garman said the company no longer uses nondisclosure agreements (NDAs) with government agencies during the approval process for new data centers. The statement was made in a blog post addressing widespread criticism of data center projects, including concerns about transparency and community impact. Garman's announcement follows a wave of proposed moratoriums on large data center permits across the United States, with more than 100 such measures reportedly under consideration.

Criticism of data center projects has centered on a lack of transparency, with activists and officials citing NDAs as a barrier to public awareness. Environmental activist Erin Brockovich has highlighted NDAs as a key issue, noting that communities often learn about projects only after permits are secured and officials are bound by confidentiality agreements.

In response to claims about environmental impact, Garman cited an Amazon report stating that direct data center water consumption accounts for 0.5% of all industrial water usage in the U.S., a figure he described as "orders of magnitude less" than sectors like golf courses and almond farming. He also disputed assertions that data centers significantly increase local electricity rates, attributing cost hikes in some areas to outdated grid infrastructure rather than data center demand.

Garman further argued that data center backup generators operate at full capacity only rarely, estimating they run approximately 10 hours per year, primarily for maintenance testing. He also noted that Amazon has contributed over $1 billion to communities with data center operations over the past three years, though the effectiveness of such contributions in addressing public skepticism remains unclear.