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Amazon and Microsoft Drop NDAs in Data Center Talks

Amazon and Microsoft are ending NDAs in data center talks with local governments, a move aimed at improving transparency as communities weigh AI infrastructure's costs and benefits.

Amazon and Microsoft Drop NDAs in Data Center Talks

Transparency enters the AI infrastructure debate

Amazon says it will no longer use nondisclosure agreements when negotiating data center projects with local governments, following a similar move by Microsoft. The change comes as communities seek clearer information about proposed facilities and their potential local effects.

Public concerns often center on issues such as electricity demand, water use and impacts on nearby property. When project discussions happen behind closed doors, residents may have limited insight into who will operate a facility or what commitments are being considered.

Ending NDAs will not necessarily resolve disagreements or prevent delays. Some communities have introduced temporary pauses while they assess data center proposals, and projects can take years to move from planning to operation.

Greater openness could, however, give local officials and residents a clearer basis for evaluating projects. The shift also highlights a broader challenge for the technology sector: explaining how new infrastructure may serve the communities asked to host it.

If transparency becomes standard practice, future data center planning may rely more on informed public discussion and clearer agreements between companies and communities.

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