Amazon has stopped using nondisclosure agreements (NDAs) when negotiating data center projects with local governments, following a similar decision by Microsoft earlier in 2026. The announcement comes as communities raise concerns about data centers’ effects on electricity costs, water consumption, property values, and local infrastructure.
The policy change appeared in an official announcement from Amazon, which also outlined the company’s position on the benefits of data centers for local communities. Amazon’s decision follows Microsoft’s earlier commitment to stop using NDAs in its discussions with local governments.
Concerns Over Data Center Transparency
The use of NDAs has raised questions about how technology companies negotiate large infrastructure projects with local authorities. In some cases, residents know a data center is being planned but do not know which company will operate or occupy the facility.
Speaking on TechCrunch’s Equity podcast, journalist Sean O’Kane said confidential negotiations have contributed to disagreements between technology companies and communities. He also argued that companies have struggled to explain how their infrastructure projects could benefit local residents.
O’Kane compared the practice with Uber’s negotiations for local government subsidies during its expansion in the mid-2010s. He recalled a project near Orlando where Uber negotiated public transportation-related ride subsidies behind closed doors, with the secrecy also allowing the company to seek additional concessions.
Data Center Restrictions and Construction Timelines
Several US jurisdictions have introduced temporary restrictions on data center development, including San Francisco. However, Equity co-host Rebecca Bellan questioned whether moratoriums lasting one or two years would significantly affect projects that may take two to five years to become operational.
Bellan noted that zoning requirements and funding challenges could already delay construction schedules. She said continued community opposition could have a greater effect, although the eventual impact of the restrictions remains uncertain.
New York has also introduced restrictions on permits for large data center projects, pending the completion of an environmental review process expected to take approximately one year. Equity host Anthony Ha noted that such restrictions allow governments to assess proposed developments before deciding whether to permit further construction.
The discussion also addressed communication problems within the technology industry, including how companies explain artificial intelligence investments and infrastructure requirements. O’Kane cited Tesla’s changing description of its corporate mission, from “sustainable abundance” to “amazing abundance,” as another example of messaging he considered insufficiently specific.
Ha argued that technology companies should explain the practical benefits of their proposed developments rather than treating AI adoption as inevitable. He also questioned Tesla’s broader promises about abundance, noting that the company’s messaging extends beyond its automotive business.
The announcement by Amazon forms part of its stated commitment to improving communication with communities hosting data centers. The company said it would hold open houses, share project information earlier, and seek public feedback during development.
Featured image credits: Wikimedia Commons
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