Amazon Web Services (AWS) CEO Matt Garman says the company has stopped using nondisclosure agreements (NDAs) with government agencies involved in approving its data centre projects in the United States.
Garman disclosed this in a blog post addressing growing opposition to data centres, as communities and activists raise concerns about their environmental impact, electricity demand, transparency and benefits to local residents.
The issue of NDAs has become a major part of the backlash against data centre developments. Environmental activist Erin Brockovich recently identified transparency as the leading complaint she has heard about such projects, citing cases where projects were announced after permits had been secured and local officials had signed NDAs before residents were informed.
Garman said more than 100 data centre moratoriums are currently being considered across the US, warning that widespread restrictions could undermine the country’s position in the global technology race.
“If these measures are enacted, the U.S. could be writing its own losing ticket to this race, and the consequences would last generations,” he said.
Garman also sought to counter what he described as four major misconceptions about data centres — that they consume excessive amounts of water, drive up electricity prices, cause significant pollution and provide little benefit to host communities.
On water consumption, he cited an Amazon report which found that direct water use by data centres accounts for about 0.5 per cent of total industrial water consumption in the US.
However, critics and researchers have argued that such figures may not capture the water used indirectly to generate electricity or manufacture computer chips. Scientists have also called for more consistent reporting of data centre energy and water use.
Garman also disputed claims that data centres are responsible for rising electricity prices, arguing that rates have increased in some states but declined or risen more slowly in others.
He attributed increases in some areas largely to ageing power infrastructure and insufficient investment in grid expansion before demand from data centres increased.
The argument has faced criticism from energy watchdogs. One independent analysis recently attributed a significant share of a 76 per cent year-on-year increase in electricity prices on the US’s largest power grid to data centre demand.
On pollution, Garman said critics often focus on the maximum emissions permitted under data centre operating licences rather than actual emissions.
He cited a planned Amazon data centre in Texas that is permitted to emit up to 33 million tons of carbon dioxide annually, but argued that its backup generators rarely operate.
“The truth is data center generators almost never run,” Garman said, adding that they are idle 99.9 per cent of the time and typically operate for about 10 hours annually, mainly for maintenance testing.
Garman said Amazon had also contributed more than $1 billion to communities across the US over the past three years in areas where it has a significant data centre presence.
The company’s decision to end NDAs with government agencies is part of its broader effort to address concerns over transparency and community engagement.
Whether the measures will ease opposition remains uncertain, with growing scepticism toward major technology companies and their assurances over the social and environmental impact of AI infrastructure.
Anthropic CEO Dario Amodei recently described the broader backlash against AI as a “crisis of trust”, while writer Jasmine Sun observed that opponents often respond to industry assurances by saying, “I don’t believe them.”
- OpenAI safety employee quits, says company’s ‘culture is broken’ - October 4, 2026
- Amazon drops NDAs with govt agencies amid data centre backlash - October 4, 2026
- Court freezes Osun accounts over $13.9m arbitration award - October 4, 2026
