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Home » AI News » Amazon responds to data center backlash, says it no longer uses NDAs
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AI News

Amazon responds to data center backlash, says it no longer uses NDAs

CryptoAINewsBy CryptoAINewsOctober 3, 2026No Comments4 Mins Read
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Amazon Net Companies CEO Matt Garman stated the corporate has stopped using nondisclosure agreements (NDAs) in its dealings with authorities businesses because it seeks approval to construct new knowledge facilities.

Garman’s assertion is only one sentence in a longer blog post wherein he tried to push again towards widespread suspicion of information facilities, and to make the case that they’re really good for communities.

NDAs are a major piece of the broader knowledge heart backlash. For instance, environmental activist Erin Brockovich not too long ago stated that the number one complaint she’s heard about data centers is transparency, with these tasks following a typical sample: “tasks introduced after permits are already secured, builders who don’t return calls, native officers who signed NDAs earlier than their neighbors knew a undertaking was being thought of.”

On account of that backlash, New York announced a one-year moratorium on permits for large data centers, and in keeping with Garman, there are greater than 100 knowledge heart moratoriums at the moment being thought of throughout the US.

“If these measures are enacted, the U.S. might be writing its personal shedding ticket to this race, and the implications would final generations,” Garman claimed. “As a rustic, we are able to’t afford to seek out ourselves in that place.”

Garman additionally tried to puncture what he stated are 4 huge myths round knowledge facilities: that they devour an excessive amount of water, that they enhance electrical energy prices, that they emit an unlimited quantity of air pollution, and that they don’t present any advantages to their communities.

Pointing to an Amazon report about its own water usage, Garman stated that “direct knowledge heart water consumption” solely accounts for 0.5% of all industrial water utilization in the US, “orders of magnitude lower than golf programs, almond farming, and plenty of different industries.”

Nvidia not too long ago stated it’s eliminating “pretty much all water usage” inside a data center, however these claims — like Amazon’s — appear to disregard the broader water utilization concerned in electrical energy era and chip manufacturing. Scientists have additionally stated they need to study data centers’ water and energy usage independently, since there aren’t any federal or state necessities round how tech firms report this knowledge. 

As for electrical energy charges, Garman stated they’ve solely gone up in some states with giant numbers of information facilities, whereas they’ve gone down or at the very least grown extra slowly in others. And he argued, “In situations the place power charges are going up, it’s primarily as a result of the grid is outdated and hasn’t been invested in and expanded earlier than the demand arrived.”

However, an unbiased watchdog stated not too long ago knowledge facilities have been the main culprit behind a 76% year-over-year price increase on America’s largest electrical grid.

In the case of air pollution — a difficulty that the NAACP is currently suing Elon Musk’s SpaceX/xAI over — Garman complained that critics concentrate on the utmost quantity of air pollution allowed underneath knowledge heart permits. For instance, a planned Amazon data center in Texas is permitted to release 33 million tons of carbon dioxide per 12 months, which is greater than every other energy plant in the US.

“The reality is knowledge heart mills virtually by no means run,” Garman stated. “They’re idle 99.9% of the time (they run roughly 10 hours per 12 months, largely for required upkeep testing).”

As for the group advantages, that is the place Garman wrote, “We not use nondisclosure agreements with the federal government businesses we work with on our tasks.” Plus, he stated, “Over the previous three years, Amazon has contributed greater than $1 billion to communities throughout the U.S. wherein we have now a significant knowledge heart presence.”

Will this be sufficient to quell group suspicion? Maybe not — Anthropic CEO Dario Amodei not too long ago argued that the AI backlash is “fundamentally a crisis of trust,” the place individuals assume governments and tech firms are at all times “cooking up some new solution to screw them over.” Equally, writer Jasmine Sun noted that when knowledge heart opponents are offered with the tech firms’ arguments, their response is normally, “I don’t consider them.”

If you buy via hyperlinks in our articles, we may earn a small commission. This doesn’t have an effect on our editorial independence.



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