Amazon Ends Data Center NDAs, Pledges $1B to Host Communities

Amazon announced it will no longer use nondisclosure agreements in its arrangements with county officials for data centers, and CEO Matt Garman said the company will invest $1 billion over the next five years in the communities that host those facilities.

The investment is set to fund free community college programs, workforce training, and energy efficiency upgrades for schools, homes, and community buildings.

Garman said more than 100 data center moratoriums are being considered across the United States, a signal of growing local resistance to the industry's expansion.

The policy shift follows mounting scrutiny of how tech companies negotiate data center deals. In July, the New York Times reported on secret agreements at all levels of government for Amazon's Hyperion data center in Louisiana.

Several governors have recently moved against data center NDAs through executive orders, including Pennsylvania Gov. Josh Shapiro, Massachusetts Gov. Maura Healey, and Delaware Gov. Matt Meyer. Multiple states, among them New York, New Jersey, Indiana, and Ohio, have considered legislation banning the practice, and a bipartisan group of lawmakers recently introduced the No Secrets for Data Centers Act in the House.

Earlier this week, Rep. Jamie Raskin sent letters to Amazon, Google, Meta, and Oracle demanding information on their use of data center NDAs, as reported by wired.com. Last month, the Houston Chronicle reported that a top official in Wharton County, Texas, signed an NDA with contractor VisionFirst Advisors regarding an Amazon project.