Amazon has recently joined Microsoft in announcing it will stop using nondisclosure agreements (NDAs) when negotiating data center projects with local governments. This move aims to increase transparency, as these negotiations have often been conducted in secrecy, leading to public distrust and backlash against new data centers. Amazon detailed this change in a blog post highlighting the benefits their data centers bring to communities, but the decision to drop NDAs was a subtler part of their broader message.

The backdrop to this shift includes a wave of moratoriums on data center construction in various cities, including San Francisco and New York. These bans typically last one to two years and aim to pause development so environmental and community impacts can be assessed. While some experts believe these moratoriums may not cause long-term delays given data centers take years to come online, companies clearly feel pressure, as seen in their communications and public responses to resistance.

The core issue seems to be poor communication by the tech industry, which struggles to explain the value and necessity of data centers and AI infrastructure in ways local communities can understand. According to commentators on TechCrunch’s Equity podcast, secrecy in negotiations, coupled with a lack of clear messaging about how these projects benefit residents, has fueled opposition and suspicion. Removing NDAs is seen as a first step toward rebuilding trust, but it will not immediately dissolve entrenched concerns.

Industry voices also reflected on the broader challenge technology companies face in balancing innovation with public acceptance. The AI and data center industries need to engage transparently with communities rather than relying on inevitability narratives about technological progress. Only by opening conversations and clarifying benefits can data center proponents overcome resistance and demonstrate their role in supporting the AI-driven future.