Amazon Ended Data Center Nondisclosure Agreements

The move aims to address mounting public skepticism and over 100 legislative moratoriums on data center construction.

Updated on Oct. 3, 2026 in Data Centers

Isometric editorial illustration of a solitary industrial cooling pipe assembly, representing the scale of cloud infrastructure and policy transparency. — Amazon Web Services has discontinued the use of nondisclosure agreements with government agencies for its data center construction projects nationwide. AI Illustration. Upload story photo >

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Amazon Web Services has ended the use of nondisclosure agreements with government agencies for its data center projects. This policy shift follows growing public opposition, with over 100 data center moratoriums currently under consideration across the United States.

Why it matters

The change responds to widespread community concerns regarding local water usage, electricity costs, and pollution associated with massive cloud infrastructure. It marks a shift in how developers engage with public scrutiny as industry expansion faces legislative hurdles.

Data centers account for 0.5% of total industrial water usage in the United States. While backup generators are permitted to run, they remain idle 99.9% of the time, operating for only 10 hours annually for maintenance testing.

The players

Amazon Web Services

A cloud computing provider and major infrastructure developer currently facing nationwide community resistance to its data center footprint.

The details

Data center developers typically secure permits before projects are publicly disclosed, a practice that has fueled local backlash. In Texas, a planned facility is permitted to release 33 million tons of carbon dioxide annually, further driving public suspicion. Amazon maintains that it has contributed over $1 billion to local communities in an effort to mitigate these resource-intensive concerns.

Amazon contributed $1 billion to local communities between 2023 and 2026.
Amazon Web Services announced the end of its NDA usage on October 3, 2026.

The Tech Race

This move represents a strategic pivot as the industry attempts to curb the rise of state-level restrictions like New York's one-year moratorium on large data center permits. It signals a departure from the previous standard of using nondisclosure agreements to expedite site development.

Local residents in areas targeted for new facilities may now see project details earlier in the permitting process. This transparency shift is intended to reduce local project friction, though it does not address the underlying resource demands of existing data sites.

The takeaway

The move suggests a defensive pivot by cloud giants to stave off a mounting wave of state-level permit restrictions. Watch for the outcomes of the 100 active moratoriums across the U.S. to determine if this transparency shift effectively slows the legislative pushback against new builds.