Amazon is dropping the use of nondisclosure agreements for its data centers. CEO Matt Garman shared the change in a blog post on Friday.
Garman also pledged a $1 billion investment over the next five years. The funds will support free community college programs and workforce training. Money will also go toward energy efficiency upgrades for schools, homes, and community buildings.
Garman noted that public backlash threatens the artificial intelligence buildout. He warned that over 100 data center moratoriums are under consideration across the country. He wrote that enacting these measures could cause the US to lose the artificial intelligence race for generations.
Nondisclosure agreements sparked major disputes
Nondisclosure agreements have sparked major disputes during recent data center expansions. Local officials signing these deals often cannot share project details like energy and water use. Some agreements even block officials from naming the tech companies behind the projects.
Governors Josh Shapiro of Pennsylvania, Maura Healey of Massachusetts, and Matt Meyer of Delaware recently issued executive orders targeting these secrecy pacts. Lawmakers in New York, New Jersey, Indiana, and Ohio have also considered bills to ban the practice. Federal lawmakers recently introduced the No Secrets for Data Centers Act in the House.
Representative Jamie Raskin sent letters to Amazon, Google, Meta, and Oracle demanding information on their nondisclosure agreement use. Amazon told The Wall Street Journal it stopped using the agreements. Google, Meta, and Oracle did not respond to the Journal request.
Read nextFlaw in ChatGPT Mac App Exposed Sensitive Data and ChatsAmazon faced scrutiny over secret projects
Amazon previously faced scrutiny in Tucson, Arizona, after a records request revealed its involvement in a secret project. The company later exited that site. In South Bend, Indiana, officials cited nondisclosure agreements when unable to answer questions about a $13 billion Amazon campus.
Third-party contractors often handle government talks rather than tech companies directly. A Wharton County official in Texas signed a nondisclosure agreement with contractor VisionFirst Advisors regarding an Amazon project. Amazon did not answer WIRED queries on whether its policy change applies to contractors.
Garman used his blog post to dispute claims regarding energy use, water use, diesel generators, and community impacts. He claimed foreign countries are intentionally seeding misinformation in the US to slow the infrastructure buildout. Experts state this narrative is overblown and lacks solid evidence.
Amazon will now proceed with its community investments and data center plans without using nondisclosure agreements.
