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AI AI · 2 MIN READ

Amazon ends NDAs in data center deals to boost local trust

Amazon announced it will stop using non-disclosure agreements (NDAs) when negotiating data center deals with local governments, following a similar move by…

Amazon announced it will stop using non-disclosure agreements (NDAs) when negotiating data center deals with local governments, following a similar move by Microsoft earlier this year, according to techcrunch.com. This shift aims to address community opposition that has led to hundreds of moratoriums on AI infrastructure projects across cities like New York and San Francisco.

The decision to drop NDAs comes amid growing public backlash against secretive data center negotiations, which have fueled distrust in AI infrastructure expansion. On TechCrunch's Equity podcast, hosts Anthony Ha, Sean O’Kane, and Rebecca Bellan discussed how increased transparency could change the dynamics of these deals and highlighted that trust may become the key product for startups developing personal AI agents that require access to sensitive user data.

This move by Amazon and Microsoft reflects a broader industry trend toward openness in AI infrastructure development, responding to community concerns over privacy and environmental impact. The backlash against opaque agreements has slowed AI data center projects, prompting companies to reconsider their approach. Meanwhile, startups are exploring business models where AI agents gain user trust to access inboxes, files, and credit cards, signaling a shift in how AI services might operate.

Amazon's announcement follows Microsoft’s earlier decision this year to drop NDAs in similar negotiations, marking a notable change in how major tech companies engage with local governments on AI infrastructure. The next key milestone will be observing how these transparency efforts influence the approval and construction of new data centers in major U.S. cities.

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