Amazon stops using NDAs for local data center deals

In short: Amazon says it will stop using NDAs in data center negotiations with local governments, as concern grows about secrecy around AI-related building projects.

What happened

Amazon says it will no longer use NDAs when negotiating data center deals with local governments. An NDA is a non-disclosure agreement, which is a legal promise not to share details (like telling someone you can talk, but only in whispers).

The move follows a similar decision from Microsoft earlier this year. According to TechCrunch, secrecy around these projects has helped fuel community backlash against AI infrastructure. In many places, residents and local officials have pushed back on new data centers, and that has contributed to hundreds of proposed and enacted moratoriums, which are temporary pauses on projects, from New York to San Francisco.

The same TechCrunch podcast episode also discussed another issue tied to AI tools. Several startups are building “AI agents,” which are AI assistants that can take actions for you online (like booking travel or shopping). Some of these companies are betting people will give these agents access to sensitive accounts, including email, files, and even credit cards, but only if websites allow these tools to log in and act on a user’s behalf.

Why it matters

Data centers can affect local communities in very practical ways, including land use, energy demand, and water use. Dropping NDAs could make it easier for residents to learn what is being proposed and to weigh in earlier. At the same time, the push for AI agents with broad access raises a trust question for everyday users, since giving an assistant your card number is closer to handing over your wallet than asking a simple question.

Source: TechCrunch AI