Amazon says it will stop using NDAs in local data center talks

In short: Amazon says it will stop asking local governments to sign NDAs when negotiating data center deals, after Microsoft made a similar change.

What happened

Amazon told TechCrunch it will no longer use NDAs when it negotiates data center projects with local governments. An NDA is a non disclosure agreement, it is a contract that keeps people from sharing details publicly.

These deals can cover things like where a new data center will be built and what the company might receive in return, such as tax breaks or infrastructure support. Data centers are large buildings filled with computers that run online services, including many AI systems.

The change follows Microsoft, which earlier this year also said it would end the use of NDAs with local governments for these kinds of talks. The TechCrunch Equity podcast discussed whether dropping NDAs will actually change how these projects get approved and how communities react.

Why it matters

In many cities and towns, people have pushed back on new AI related data centers because they can use a lot of electricity and water and they may change local development plans. TechCrunch reports that this backlash has helped drive hundreds of proposed and enacted moratoriums, meaning temporary stops or limits, in places ranging from New York to San Francisco.

Not using NDAs can make it easier for residents to learn what is being proposed and to ask questions early, like seeing the paperwork before construction starts (instead of after the decisions are made). But it does not guarantee agreement, since communities may still oppose the projects for practical reasons.

Source: TechCrunch AI