InfrastructureCompute, chips & cloud
AWS stops signing data center NDAs with local governments and pledges more than $1 billion to host communities
AWS says it will no longer sign nondisclosure agreements with government agencies on new data center projects, following Microsoft's March pledge. The change, paired with a $1 billion-plus community program, responds to local opposition that has delayed or blocked projects nationwide.
Reach: not measured yet

AWS's NDA pledge applies only to future deals and leaves agreements it has already signed in place. Microsoft's March 2026 pledge goes further because it also commits to ending existing NDAs, although Microsoft still has one active in Kenosha, Wisconsin. South Bend, Indiana banned NDAs on its own after a city official admitted signing one with AWS in 2023. [7] [3] [5] [4] [8]
Local opposition is driving these changes. One tracker counted about $98 billion in projects delayed or blocked in Q4 2025, and lack of transparency was a leading complaint. Counts of moratoriums vary a lot by source, from more than 100 under consideration to more than 550 jurisdictions. [6] [8] [9] [1]
Openness still has limits. AWS promises public open houses and yearly reports on energy use, water efficiency and the share of carbon-free energy. Microsoft can still protect trade secrets and design or security details in permit filings where the law allows, and it will release project information in stages as a project moves forward. [7] [8] [5]
The Built Together program will spend more than $1 billion over five years on community college funding, training centers and efficiency upgrades for schools and homes. Critics say that is small, at roughly 0.1% of Amazon's projected $220 billion in 2026 capital spending. [3]
opposition delayed or blocked about $98 billion in projects in one quarter, and two hyperscalers have now dropped new NDAs.
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Implication: other developers may be expected to work without NDAs, and compute buyers should treat local approval as a risk to delivery timelines.
Executive brief
AWS has stopped signing nondisclosure agreements (NDAs) with government agencies on new data center projects, but the pledge does not cover NDAs it has already signed. Microsoft made a similar pledge in March 2026 and said it would also end its existing NDAs (Implicator). Amazon announced the change on October 2 alongside "Built Together," a program of more than $1 billion over five years for communities that host its data centers. Critics call that money small next to Amazon's capital spending. Local opposition is the reason for both moves: secrecy has fed moratoriums and blocked projects across the U.S.
What changed and event timeline
Microsoft drops NDAs
Microsoft said it would stop signing NDAs that keep data center proposals secret and would work to end the ones already in place. It still has an active NDA in Kenosha, Wisconsin (;).
Opposition becomes a gatekeeper
Data Center Watch counted about $98 billion in projects delayed or blocked in Q4 2025. Lack of transparency was one of the main community complaints ().
South Bend bans NDAs
Mayor James Mueller signed executive orders after the city's public works director, Eric Horvath, admitted signing an NDA with AWS in 2023 ().
AWS follows
AWS CEO Matt Garman said AWS no longer uses NDAs with government agencies. He also promised public open houses and annual disclosure of energy use, water efficiency and carbon-free energy share (;).
Equity asks if it's enough
TechCrunch's Equity podcast discussed whether dropping NDAs will change how these deals get done ().
Capabilities and access
No AI model or product is involved. This is a change in how deals are negotiated.
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No AI model or product is involved. This is a change in how deals are negotiated. AWS's commitments:
- No new NDAs with government agencies (WNDU).
- Every year, publish energy use, water efficiency and the share of carbon-free energy. Hold public open houses.
- Built Together: more than $1 billion over five years. Planned uses include community college funding for about 300,000 students, 16 training centers, and efficiency upgrades for more than 300 schools and 30,000 homes (Implicator).
Technical analysis for researchers and developers
- Disclosure is limited to aggregates. The promised annual figures cover energy, water efficiency and carbon-free share.
- Microsoft can still protect trade secrets and design or security specifications filed for permits "where allowed by law."
- It does not say whether private contractors are covered (Implicator).
Read the full section
- Disclosure is limited to aggregates. The promised annual figures cover energy, water efficiency and carbon-free share. No source documents a per-site schedule, method or third-party audit.
- Microsoft's carve-outs. Microsoft can still protect trade secrets and design or security specifications filed for permits "where allowed by law." It also says details will come out in stages: land purchase, design, grading, then construction (Microsoft).
- What's still undefined. Amazon's policy looks forward only. It does not say whether private contractors are covered (Implicator).
Claims and evidence
- In its "Built Together" post, Amazon says data centers use about 0.5% of U.S. industrial water, backup generators run about 10 hours a year for maintenance, and electricity rates have fallen in some states with data centers (TechCrunch).
- The moratorium count depends on the source:
- TechCrunch: more than 100 under consideration (TechCrunch).
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- In its "Built Together" post, Amazon says data centers use about 0.5% of U.S. industrial water, backup generators run about 10 hours a year for maintenance, and electricity rates have fallen in some states with data centers (TechCrunch). These are Amazon's own figures. TechCrunch notes that independent watchdogs dispute some of them and blame data centers for a 76% price increase on the largest U.S. grid.
- The moratorium count depends on the source:
- TechCrunch: more than 100 under consideration (TechCrunch).
- The Equity episode: "hundreds" proposed and enacted (TechCrunch).
- Introl, an infrastructure company writing on its own blog: more than 550 jurisdictions (Introl).
Context and prior work
- NDAs had long been standard in site selection. Meta signed one in Beaver Dam, Wisconsin, more than a year before announcing its $1 billion data center there (Wisconsin Watch).
- Opponents cite water, electricity costs, grid reliability, few permanent jobs and lack of transparency. Examples include San Marcos, Texas rejecting a rezoning on a 5–2 vote and Monterey Park, California adopting a 45-day moratorium (Data Center Frontier).
Read the full section
- NDAs had long been standard in site selection. Meta signed one in Beaver Dam, Wisconsin, more than a year before announcing its $1 billion data center there (Wisconsin Watch).
- Opponents cite water, electricity costs, grid reliability, few permanent jobs and lack of transparency. Examples include San Marcos, Texas rejecting a rezoning on a 5–2 vote and Monterey Park, California adopting a 45-day moratorium (Data Center Frontier).
Limitations, safety and contested findings
- Amazon's past NDAs remain. The policy does not reach existing agreements. Microsoft committed to ending its existing ones (Implicator).
- South Bend Councilman Oliver Davis said the past actions were "still harmful" (WNDU). Wisconsin critics welcomed Microsoft's pledge but doubted it guarantees real engagement.
- Stand.Earth called the $1 billion "a drop in the bucket." It is roughly 0.1% of Amazon's projected $220 billion capital spending in 2026 (Implicator).
Read the full section
- Amazon's past NDAs remain. The policy does not reach existing agreements. Microsoft committed to ending its existing ones (Implicator).
- Local critics. South Bend Councilman Oliver Davis said the past actions were "still harmful" (WNDU). Wisconsin critics welcomed Microsoft's pledge but doubted it guarantees real engagement. Midwest Environmental Advocates said companies make such announcements only when communities are already pushing back hard (Wisconsin Watch).
- The money. Stand.Earth called the $1 billion "a drop in the bucket." It is roughly 0.1% of Amazon's projected $220 billion capital spending in 2026 (Implicator).
Business and practitioner implications
- Community approval is now a timeline risk. About $98 billion in projects was delayed or blocked in a single quarter (Data Center Frontier).
- NDA-free deals may become the norm. Cities can also act on their own, as South Bend did.
- Once Amazon publishes its annual energy and water figures, watchdogs can check them, as they already do with the claims in the "Built Together" post.
Read the full section
- Community approval is now a timeline risk. About $98 billion in projects was delayed or blocked in a single quarter (Data Center Frontier). Compute buyers should treat local opposition as a capacity and delivery risk.
- NDA-free deals may become the norm. With Microsoft and AWS both out, other developers and colocation firms will likely face pressure from the start. Cities can also act on their own, as South Bend did.
- Disclosure invites scrutiny. Once Amazon publishes its annual energy and water figures, watchdogs can check them, as they already do with the claims in the "Built Together" post.
The source trail.
Sources (9)
Amazon and others are done keeping data center deals secret. Is it enough to build trust?
Article text retrieved; extracted text may omit tables or interactive elements.
techcrunch.comAmazon drops data center NDAs, and AI agents want your credit card
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