Can the AI industry persuade data center opponents by getting rid of NDAs?
News Source
β’Sun, 11 Oct 2026 16:52:33 +0000
π° What Happened
Amazon followed Microsoft in saying it will no longer use non-disclosure agreements (NDAs) when negotiating with local governments over data centers. Amazon buried the change inside a longer blog post arguing that data centers help communities. On TechCrunch's Equity podcast, reporters debated whether dropping NDAs will win over opponents. Many towns have passed short-term moratoriums blocking new data centers.
π The Backstory
AI needs huge numbers of data centers, and building them uses large amounts of power and water. That has caused backlash from residents worried about noise, cost and land. Some firms used NDAs that stopped local officials from discussing deals. Microsoft dropped its NDAs first, and Amazon has now done the same, hoping to rebuild trust.
π― Why It Matters
Data centers power the AI tools people use, but they also affect local power bills and water supplies. How companies talk to towns decides whether those projects go ahead.
Amazon followed Microsoft in saying it will no longer use non-disclosure agreements (NDAs) when negotiating with local governments over data centers. Amazon buried the change inside a longer blog post arguing that data centers help communities. On TechCrunch's Equity podcast, reporters debated whether dropping NDAs will win over opponents. Many towns have passed short-term moratoriums blocking new data centers.
AI needs huge numbers of data centers, and building them uses large amounts of power and water. That has caused backlash from residents worried about noise, cost and land. Some firms used NDAs that stopped local officials from discussing deals. Microsoft dropped its NDAs first, and Amazon has now done the same, hoping to rebuild trust.
Data centers power the AI tools people use, but they also affect local power bills and water supplies. How companies talk to towns decides whether those projects go ahead.