Amazon Web Services (AWS) CEO Matt Garman confirmed that the company has stopped requiring nondisclosure agreements (NDAs) in its interactions with government agencies regarding new data center projects. This move comes amid growing public and regulatory backlash over the perceived lack of transparency in data center development.
Garman made the announcement in a blog post addressing widespread concerns about data centers, which have faced criticism for their environmental impact and community engagement practices. Environmental activist Erin Brockovich highlighted transparency as the top issue, citing instances where projects were announced only after permits were secured and local officials signed NDAs before the public was informed.
The backlash has led to regulatory actions such as New York’s one-year moratorium on large data center permits, with over 100 similar moratoriums under consideration nationwide. Garman warned that restricting data center growth could harm the U.S. technology sector’s competitiveness in the long term.
In his post, Garman sought to dispel four common misconceptions about data centers: excessive water consumption, rising electricity costs, high pollution levels, and lack of community benefits. He cited an Amazon report showing that direct water use by data centers accounts for only 0.5% of U.S. industrial water consumption, significantly less than other industries like agriculture.
Regarding electricity costs, Garman noted that rates have only increased in some states with many data centers, attributing this to aging grid infrastructure rather than data center demand alone. However, independent analyses have linked data centers to sharp electricity price hikes in certain regions.
On pollution, Garman argued that data center backup generators, which have high permitted emission limits, operate infrequently—about 10 hours annually mainly for maintenance—contradicting concerns about constant high emissions.
Highlighting community investment, Garman stated that Amazon has contributed over $1 billion to U.S. communities hosting its data centers in the past three years. He emphasized that ending NDAs with government agencies is part of Amazon’s effort to improve transparency and trust.
Despite these assurances, skepticism remains among activists and industry observers. Anthropic CEO Dario Amodei described the AI and data center backlash as a “crisis of trust,” with many communities doubting corporate and governmental transparency claims. Writer Jasmine Sun noted that opponents often respond to corporate explanations with disbelief, indicating ongoing challenges for tech companies in gaining public confidence.