Ending Government NDAs
Amazon Web Services CEO Matt Garman announced that the company has stopped using nondisclosure agreements in its dealings with government agencies while seeking approval to build new data centers.
Garman's statement appeared in a blog post intended to address widespread public suspicion surrounding data centers and argue for their economic value to local communities.
The use of nondisclosure agreements has been a major point of contention in the broader resistance to infrastructure projects. Activist Erin Brockovich noted that transparency remains a primary public complaint, citing instances where projects are announced only after permits are secured and local officials have signed confidentiality agreements.
Regulatory Pushback and Moratoriums
Public opposition has led to tangible regulatory hurdles, including a one-year moratorium on large data center permits in New York. According to Garman, more than 100 similar moratoriums are currently under consideration across the United States.
Garman warned that enacting these measures could cause the United States to fall behind globally, arguing that the country cannot afford the long-term consequences of halting infrastructure development.
Addressing Industry Myths
In his post, Garman sought to debunk four common criticisms regarding data centers: excessive water consumption, increased electricity costs, high pollution emissions, and a lack of local community benefits.
Water and Energy Consumption
Citing internal data, Garman stated that direct water consumption by data centers accounts for a small fraction of total U.S. industrial usage, significantly less than agriculture and other sectors.
However, independent experts and scientists point out that such figures often overlook indirect water consumption tied to chip manufacturing and power generation. Researchers also emphasize the need for independent oversight, as mandatory federal and state reporting requirements remain limited.
Regarding electricity rates, Garman argued that price increases are largely driven by aging and underinvested electrical grids rather than the arrival of new server farms.
In contrast, independent watchdog reports have pointed to large-scale computing facilities as primary drivers behind steep price increases on major American electrical grids.
Emissions and Community Investments
Addressing pollution concerns, Garman criticized metrics that focus on maximum permitted emissions rather than operational realities. For instance, a planned facility in Texas holds permits for high carbon dioxide output.
Garman maintained that backup generators remain idle for the vast majority of the time, operating primarily for required maintenance testing rather than continuous power generation.
Highlighting community investments, Garman reiterated the end of government NDAs and noted that Amazon has contributed substantial financial support to regions hosting its data center infrastructure over the past three years.
Industry observers suggest that technical rebuttals may not immediately resolve public skepticism. Analysts note that opposition to artificial intelligence infrastructure is deeply rooted in a broader crisis of trust between communities, governments, and major technology firms.
