Amazon joins Microsoft in dropping NDAs for data center negotiations with local governments

Amazon recently announced it will no longer use nondisclosure agreements (NDAs) when negotiating with local governments over data center projects, aligning with a similar commitment Microsoft made earlier this year. The change is intended to increase transparency as AI companies face rising opposition to large-scale data center builds in communities across the U.S.

During a discussion on TechCrunch’s Equity podcast, reporters noted that the announcement was embedded within a broader blog post arguing that data centers benefit local economies. The move reflects growing concern within the industry that opaque negotiations contribute to public distrust and regulatory delays.

Industry observers questioned whether the shift would meaningfully reduce community resistance, given that many recent moratoriums—such as those in San Francisco and New York—are temporary and allow time for further study before approvals resume. Moratoriums in these locations are typically limited to one or two years, even as data center projects often take three to five years to come online due to zoning, funding, and environmental review processes.

Commentators highlighted a broader communication gap between the tech industry and the public, arguing that companies have struggled to articulate the benefits of AI infrastructure in ways that resonate with local residents. The lack of clarity, they said, fuels skepticism about data centers’ impact on property values, electricity rates, and water usage.

The discussion also drew parallels to past controversies, such as Uber’s use of secrecy in local negotiations during its rapid expansion in the mid‑2010s. Observers suggested that transparency in negotiations could help preempt similar backlashes by making the terms and trade‑offs of infrastructure deals more visible to the public.