Amazon says it will stop using non-disclosure agreements (NDAs) when negotiating data center deals with local governments, according to TechCrunch. The move follows a similar decision by Microsoft earlier this year.
The change comes as secrecy around AI infrastructure has fueled community backlash, leading to hundreds of proposed and enacted moratoriums across the United States, from New York to San Francisco. The story was discussed on TechCrunch's Equity podcast.
Why Amazon Is Dropping NDAs
For years, tech giants have relied on NDAs to keep the terms of data center negotiations out of public view. These agreements often covered tax breaks, land deals, and energy contracts signed with local authorities.
That secrecy has become a flashpoint. As AI companies race to build massive computing clusters, residents and local officials have pushed back, citing concerns over electricity use, water consumption, and transparency.
Amazon's decision to drop NDAs is being framed as a direct response to that backlash. Microsoft made a similar pledge earlier in the year, signaling that the industry may be shifting toward more open negotiations.
Trust as the Real Product in AI
The debate over data center transparency is not happening in isolation. TechCrunch also highlighted a parallel trend: personal AI startups are betting that consumers will hand AI agents access to their inboxes, files, and credit cards.
These startups argue that trust is the real product. Without it, users will not let AI agents act on their behalf. The same logic applies to data centers, where communities are demanding more information before approving new projects.
TechCrunch's Equity podcast, hosted by Anthony Ha, Sean O'Kane, and Rebecca Bellan, explored whether ditching NDAs will actually change how deals get done, or whether it is mostly a public relations move.
