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Amazon drops secrecy agreements amid community opposition to data centres

TechCrunch ·

Amazon Web Services chief executive Matt Garman says the company has stopped using non-disclosure agreements with government agencies involved in its data centre projects. The announcement comes amid growing public resistance, with critics citing secrecy and concerns about water, electricity costs and pollution; Amazon is seeking to reassure communities and support new construction.

Garman said more than 100 data centre moratoriums are being considered in the United States, while New York has announced a one-year pause on permits for large facilities. He argued that data centres account for 0.5% of US industrial water use and that backup generators run about 10 hours a year, though the article notes concerns that such claims omit indirect water use and that an independent watchdog linked data centres to a 76% annual price rise on the country’s largest electricity grid.

  • AWS says it has stopped using NDAs with government agencies.
  • The move comes amid widespread concern about data centre projects.
  • Garman disputes claims about their water, power and pollution impacts.

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Data centres are large buildings filled with computers that store information and run online services. Amazon Web Services, or AWS, is Amazon’s cloud computing business; it builds and operates these facilities, often with local government involvement in planning and permits.

Residents and campaigners in some areas have questioned how data centres affect water supplies, electricity bills and air quality. Amazon chief executive Matt Garman says the company has stopped asking government agencies involved in its projects to sign non-disclosure agreements, as it seeks support for further construction.

US officials and communities are weighing the benefits of new investment and computing capacity against possible local costs. Some places are considering limits or pauses on new projects, while the scale of data centres’ effects remains disputed.

Both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

Ending NDAs can help communities scrutinise projects that may affect local water supplies, electricity bills and pollution, and build trust in decisions about them. A pause on permits can give officials time to assess cumulative impacts and set safeguards, especially where reliable data on indirect water use and energy costs is lacking.

The case against

Data centres support cloud services, digital businesses and jobs, and delaying construction may impede investment and the infrastructure communities and industries increasingly rely on. Their local costs can be managed through transparent consultation, evidence-based standards and mitigation; broad moratoriums risk holding up projects even where water and electricity impacts are limited.

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Originally published by TechCrunch as “Amazon responds to data center backlash, says it no longer uses NDAs”.