Amazon Web Services CEO Matt Garman said the company has stopped using nondisclosure agreements (NDAs) with government agencies as it seeks approval for new data center projects across the United States. The announcement came as part of a broader effort by Amazon to address growing public opposition to data centers and defend their economic and environmental impact on local communities.
Garman disclosed the policy change in a blog post published on Amazon’s official website, where he argued that many concerns surrounding data centers are based on misconceptions and a lack of trust between communities, governments, and technology companies.
Data Center Projects Face Growing Resistance
The decision comes as data center developers face increasing scrutiny over transparency, environmental impact, and energy consumption. Critics have frequently accused companies of limiting public visibility into projects through confidentiality agreements and restricted communication.
Environmental activist Erin Brockovich previously identified transparency as the most common complaint she hears about data center developments. She described a pattern in which projects are announced after permits have already been secured, developers fail to respond to community inquiries, and local officials sign NDAs before residents are aware that projects are under consideration.
The backlash has already led to policy responses. New York recently announced a one-year moratorium on permits for large data centers, while Garman said more than 100 data center moratorium proposals are currently being considered across the United States.
“If these measures are enacted, the U.S. could be writing its own losing ticket to this race, and the consequences would last generations,” Garman wrote. “As a country, we can’t afford to find ourselves in that position.”
Amazon Challenges Common Criticisms
In his post, Garman addressed what he described as four major misconceptions about data centers: excessive water consumption, rising electricity costs, high pollution levels, and limited community benefits.
Citing an Amazon report on data center water usage, Garman said direct data center water consumption accounts for only 0.5% of industrial water usage in the United States. He argued that this is significantly lower than consumption associated with golf courses, almond farming, and several other industries.
However, questions remain about the broader water footprint associated with electricity generation and semiconductor manufacturing. Researchers have also noted that there are currently no federal or state requirements governing how technology companies report water and energy usage, making independent comparisons difficult.
Debate Continues Over Energy And Emissions
Garman also disputed claims that data centers are driving higher electricity costs. He said some states with large numbers of data centers have experienced slower growth in electricity prices or even declines, while increases elsewhere are often linked to aging infrastructure that was not expanded before demand increased.
Those claims contrast with findings from an independent watchdog that recently attributed a 76% year-over-year electricity price increase on the largest U.S. power grid primarily to growing data center demand.
On emissions, Garman argued that critics often focus on the maximum pollution levels permitted under regulatory approvals rather than actual operating conditions. A planned Amazon data center in Texas, for example, has permits allowing up to 33 million tons of carbon dioxide emissions annually, a level that would exceed any other power plant in the United States.
“The truth is data center generators almost never run,” Garman wrote. “They’re idle 99.9% of the time.”
According to Garman, backup generators typically operate for roughly 10 hours per year, mainly for required maintenance testing.
Amazon Highlights Community Investments
Garman linked Amazon’s decision to stop using NDAs with government agencies to the company’s efforts to increase community engagement and trust. He said the company wants residents to have greater visibility into projects being planned in their areas.
He also stated that Amazon has contributed more than $1 billion to U.S. communities where it maintains a significant data center presence during the past three years.
Despite those efforts, questions about public trust remain. Anthropic CEO Dario Amodei recently described opposition to AI-related infrastructure as a crisis of trust, arguing that many people assume governments and technology companies are acting against their interests.
Writer Jasmine Sun similarly observed that opponents of data center projects often remain skeptical even when companies present detailed explanations and supporting data.
Featured image credits: Wikimedia Commons
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