Amazon Ends Local Government NDAs as Data Center Opposition Grows

Amazon will stop using nondisclosure agreements with local governments during data center negotiations, following Microsoft’s earlier decision as communities debate the projects’ effects on electricity costs, water use and housing.

The change removes a layer of confidentiality from discussions between the companies and local officials. Microsoft ended the practice earlier this year, and Amazon has now followed.

Data center proposals have faced resistance over the resources and infrastructure they require. Concerns include higher electricity costs, water consumption and effects on housing prices.

Local governments in the United States have imposed temporary moratoriums while reviewing proposals. New York state suspended permits for all large data center construction for one year in July while the state completes an environmental review.

Some other moratoriums last one or two years. That timeline is shorter than the development cycle for many data centers, which can take three to five years from application to operation, including zoning changes and financing.

Ending NDAs does not resolve the underlying disputes over data center projects. It changes how companies and local governments handle negotiations while communities consider the projects’ potential effects.

The policy shift comes as Amazon and Microsoft expand infrastructure for cloud computing and artificial intelligence. The next major tests will come through local reviews and decisions on proposed projects.