Amazon Web Services CEO Matt Garman said the company has stopped using nondisclosure agreements (NDAs) in its dealings with government agencies as it seeks approval to build new data centers.
Garman’s statement is just one sentence in a longer blog post in which he tried to push back against widespread suspicion of data centers, and to make the case that they’re actually good for communities.
NDAs are a significant piece of the broader data center backlash. For example, environmental activist Erin Brockovich recently said that the number one complaint she’s heard about data centers is transparency, with these projects following a common pattern: “projects announced after permits are already secured, developers who don’t return calls, local officials who signed NDAs before their neighbors knew a project being considered.”
As a result of that backlash, New York announced a one-year moratorium on permits for large data centers, and according to Garman, there are more than 100 data center moratoriums currently being considered across the United States.
“If these measures are enacted, the U.S. could be writing its own losing ticket to this race, and the consequences would last generations,” Garman claimed. “As a country, we can’t afford to find ourselves in that position.”
Garman also attempted to puncture what he said are four big myths around data centers: that they consume too much water, that they increase electricity costs, that they emit an enormous amount of pollution, and that they don’t provide any benefits to their communities.
Pointing to an Amazon report about its own water usage, Garman said that “direct data center water consumption” only accounts for 0.5% of all industrial water usage in the United States, “orders of magnitude less than golf courses, almond farming, and many other industries.”
Nvidia recently said its new cooling system eliminates “pretty much all water usage” inside the data center, but those claims — like Amazon’s — seem to ignore the broader water usage involved in electricity generation and chip manufacturing. Scientists have also said they need to study data centers’ water and energy usage independently, since there are no federal or state requirements around how tech companies report this data.
As for electricity rates, Garman said they’ve only gone up in some states with large numbers of data centers, while they’ve gone down or at least grown more slowly in others. And he argued, “In instances where energy rates are going up, it’s primarily because the grid is old and hasn’t been invested in and expanded before the demand arrived.”
On the other hand, an independent watchdog said recently data centers were the main culprit behind a 76% year-over-year price increase on America’s largest electrical grid.
When it comes to pollution — an issue that the NAACP is currently suing Elon Musk’s SpaceX/xAI over — Garman complained that critics focus on the maximum amount of pollution allowed under data center permits. For example, a planned Amazon data center in Texas is permitted to release 33 million tons of carbon dioxide per year, which is more than any other power plant in the United States.
“The truth is data center generators almost never run,” Garman said. “They’re idle 99.9% of the time (they run roughly 10 hours per year, mostly for required maintenance testing).”
As for the community benefits, this is where Garman wrote, “We no longer use nondisclosure agreements with the government agencies we work with on our projects.” Plus, he said, “Over the past three years, Amazon has contributed more than $1 billion to communities across the U.S. in which we have a meaningful data center presence.”
Will this be enough to quell community suspicion? Perhaps not — Anthropic CEO Dario Amodei recently argued that the AI backlash is “fundamentally a crisis of trust,” where people assume governments and tech companies are always “cooking up some new way to screw them over.” Similarly, writer Jasmine Sun noted that when data center opponents are presented with the tech companies’ arguments, their response is usually, “I don’t believe them.”
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AWS Confronts Data Center Backlash: A Strategic Shift Towards Transparency Amidst a Crisis of Trust
Key Takeaways
- AWS Drops NDAs:Amazon Web Services CEO Matt Garman announced the cessation of nondisclosure agreements with government agencies for data center projects, a significant move aimed at addressing transparency concerns that fuel community backlash.
- Debunking “Myths”:Garman challenged common criticisms regarding data centers’ environmental impact (water, electricity, pollution) and community benefits, offering Amazon’s perspective but facing counterarguments from independent analyses and community groups.
- Crisis of Trust Persists:Despite AWS’s efforts, a deep-seated skepticism toward big tech remains, with critics pointing to a lack of independent oversight and a perceived disconnect between corporate claims and local realities, highlighting an underlying “crisis of trust.”
The Data Center Divide: AWS’s Defensive Stance
The rapid expansion of data centers, the digital backbone of our connected world, is increasingly clashing with local communities. From concerns over massive resource consumption to a perceived lack of transparency, these infrastructural behemoths are drawing significant public scrutiny. Amidst this growing backlash, Amazon Web Services (AWS) CEO Matt Garman has stepped forward with a strategic pivot: a public commitment to greater transparency, specifically by ending the use of nondisclosure agreements (NDAs) with government agencies for data center approvals.
Garman’s announcement, embedded within a broader blog post defending data centers, represents a direct response to a burgeoning movement of local opposition. This shift acknowledges a critical pressure point: the public’s demand for clarity in projects that often arrive with little prior community consultation, leaving residents feeling sidelined and suspicious. The move also comes as over 100 data center moratoriums are reportedly being considered across the United States, illustrating the urgent need for tech giants to re-evaluate their community engagement strategies.
A Concession to Transparency: The NDA Pivot
The decision by AWS to abandon NDAs in its dealings with government bodies is a tacit admission of the role these agreements have played in eroding public trust. Environmental activist Erin Brockovich has been a vocal critic, highlighting how NDAs often enable a pattern where “projects announced after permits are already secured, developers who don’t return calls, local officials who signed NDAs before their neighbors knew a project was being considered.” This veil of secrecy has fueled accusations of backroom deals and a disregard for local input, creating fertile ground for skepticism and resistance.
For communities often blindsided by the scale and demands of a new data center, the lack of information creates a vacuum filled by fear and speculation. The NDA concession by AWS, therefore, is not merely an administrative change but a strategic attempt to rebuild a damaged public image and foster a more open dialogue with the very communities that host these critical digital infrastructures. Whether this singular step will be enough to mend years of strained relations remains a significant question.
Challenging the “Myths”: AWS’s Counter-Narrative
Beyond the NDA shift, Garman’s blog post systematically attempts to dismantle what he labels as four prevalent “myths” surrounding data centers: excessive water consumption, inflated electricity costs, significant pollution, and a lack of community benefits. AWS’s defense is robust, but often met with counterarguments and calls for more comprehensive, independently verifiable data.
Water Consumption: A Deeper Dive
Garman asserts that “direct data center water consumption” accounts for a mere 0.5% of all industrial water usage in the U.S., positioning it as “orders of magnitude less than golf courses, almond farming, and many other industries.” This comparison, while providing a macro perspective, often fails to alleviate local concerns, particularly in drought-prone regions where any large-scale water draw is contentious. Critics point out that such figures typically exclude the vast quantities of water required for electricity generation that powers data centers, or the manufacturing processes of the chips within them.
Recent claims by companies like Nvidia about new cooling systems drastically reducing internal water usage are promising, but the broader ecological footprint, encompassing the entire supply chain and energy grid, remains largely unaddressed. Scientists and environmental advocates consistently call for independent studies and mandatory reporting standards, highlighting a critical gap in federal or state requirements for tech companies to transparently disclose their full water and energy usage data.
Energy Strain and Soaring Costs
Regarding electricity rates, Garman selectively points out that increases have occurred only in “some states” with high data center concentrations, while rates have stabilized or grown more slowly elsewhere. He attributes rising costs primarily to an “old grid” that hasn’t kept pace with demand. However, this narrative directly conflicts with findings from independent watchdogs, one of whom recently identified data centers as the primary driver behind a staggering 76% year-over-year price increase on America’s largest electrical grid. The sheer scale of energy demand from modern data centers, especially those powering AI, undeniably places immense pressure on existing infrastructure, often necessitating costly upgrades and new power generation that local residents ultimately bear.
Pollution: Permitted vs. Actual Emissions
The debate over pollution from data centers is particularly charged, especially in the context of high-profile cases like the NAACP’s lawsuit against Elon Musk’s SpaceX/xAI over environmental justice concerns. Garman argues that critics unfairly focus on the maximum permitted pollution levels rather than actual emissions, claiming data center generators are “idle 99.9% of the time,” running for only about 10 hours annually for maintenance. While this distinction between permitted and operational emissions is valid, the public’s concern stems from the sheer scale of the permitted figures—such as a planned Amazon data center in Texas authorized to release 33 million tons of carbon dioxide per year, an amount exceeding that of any other U.S. power plant. For local communities, these maximum figures represent a potential environmental burden that, regardless of actual current usage, casts a long shadow over their health and air quality.
Community Contributions: More Than Just Dollars?
Finally, Garman attempts to highlight the tangible benefits data centers bring, citing Amazon’s contribution of “more than $1 billion to communities across the U.S. in which we have a meaningful data center presence” over the past three years. This financial commitment, alongside the NDA cessation, is presented as evidence of Amazon’s good corporate citizenship. However, for communities grappling with increased utility costs, potential environmental impacts, and the transformation of their landscapes, financial contributions alone may not be enough to outweigh perceived negative externalities or to fully address the underlying concerns about quality of life and local control.
The Deeper Problem: A Crisis of Trust
Ultimately, AWS’s efforts to debunk myths and increase transparency collide with a fundamental issue: a pervasive “crisis of trust” in big tech. As Anthropic CEO Dario Amodei observed, the AI backlash is “fundamentally a crisis of trust,” where the public assumes tech companies and governments are “cooking up some new way to screw them over.” Writer Jasmine Sun’s anecdotal finding—that data center opponents’ typical response to corporate arguments is, “I don’t believe them”—underscores the depth of this skepticism.
This mistrust isn’t born in a vacuum; it’s often rooted in historical experiences of communities feeling exploited, misrepresented, or ignored by powerful corporations. The perceived power imbalance, coupled with a lack of truly independent oversight on environmental and economic impacts, makes it incredibly challenging for tech giants to win over skeptical residents. Garman’s warning that the U.S. risks “writing its own losing ticket” by enacting moratoriums highlights the industry’s concern for innovation and global competitiveness. Yet, for many communities, the “losing ticket” is the prospect of sacrificing local environmental health and quality of life for the sake of corporate expansion and unchecked technological advancement.
Bottom Line
AWS’s decision to drop NDAs for data center projects is a notable step towards addressing the intense community backlash and the urgent calls for greater transparency. While Matt Garman’s efforts to reframe the narrative around data centers’ environmental and economic impacts offer a corporate perspective, they highlight a stark divergence from public perception and independent analyses. The real challenge for AWS and the broader tech industry lies not just in presenting data, but in fundamentally rebuilding trust. Until communities feel genuinely heard, respected, and empowered in decision-making processes, the “crisis of trust” will continue to overshadow the undeniable benefits of digital infrastructure, necessitating a far more collaborative and transparent approach than currently exists.
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