AWS Makes Transparency Pledge by Eliminating Nondisclosure Agreements for Government Deals

Amazon Web Services announced it has discontinued the use of nondisclosure agreements in dealings with government agencies seeking to build new data centers, responding to community concerns about project secrecy. AWS CEO Matt Garman released a statement challenging what he describes as common misconceptions about data centers, including claims about water consumption and electricity costs, while acknowledging over 100 data center moratoriums are under consideration across the United States. The move addresses widespread criticism that data center projects have historically been announced after permits were already secured, leaving communities with limited input.

AWS's decision to stop using NDAs addresses a core grievance in the data center controversy: communities discovering major infrastructure projects only after governmental approval had already been granted. This transparency gap has fueled significant local resistance, with over 100 moratoriums under consideration nationwide. CEO Garman's announcement attempts to reset the conversation by acknowledging past practices while simultaneously defending the industry against criticism regarding resource consumption and environmental impact.

The broader context includes competing claims about data center effects. While AWS cites its own research on water usage and argues generators rarely operate, independent analysts and scientists have questioned the completeness of industry reporting. An electrical grid watchdog recently attributed a major price spike partly to data centers, contradicting assertions that energy costs remain stable. The absence of standardized federal reporting requirements means verification remains difficult.