Amazon Ends NDA Practice in Data Center Deals Amid Growing Transparency Demands
Amazon has announced it will stop using nondisclosure agreements (NDAs) when negotiating data center deals with local governments, following a similar decision by Microsoft earlier this year. This shift comes in response to increasing community backlash fueled by secrecy surrounding AI infrastructure projects. Across the United States, from New York City to San Francisco, local governments have proposed and enacted hundreds of moratoriums on new AI data centers, driven in part by concerns over environmental impact, resource consumption, and lack of transparency.
NDAs have traditionally been used by tech giants to shield sensitive details of their infrastructure projects from public view. However, this veil of secrecy has often exacerbated mistrust among communities and local officials, leading to resistance and political hurdles. By removing NDAs from the negotiation process, Amazon aims to foster greater openness and collaboration with local stakeholders, potentially smoothing the path for future data center expansions.
The Growing Importance of Trust in AI and Infrastructure
The move away from NDAs is part of a broader trend within the technology industry emphasizing transparency and community engagement. Microsoft’s early adoption of this policy set a precedent that Amazon is now following, signaling a shift in how major players approach infrastructure development in the AI era.
Alongside these infrastructure developments, a new wave of startups is emerging with business models centered around personal AI agents. These AI assistants aim to access users’ inboxes, files, and even financial data to deliver highly personalized services. However, gaining user trust remains paramount. Privacy and security are now critical selling points for these AI startups, many of which are pitching their products as privacy-first to differentiate themselves in a crowded market.
Highlights from TechCrunch’s Equity Podcast
On the latest episode of TechCrunch’s Equity podcast, hosts Anthony Ha, Sean O’Kane, and Rebecca Bellan explore the implications of Amazon’s decision to abandon NDAs in data center deals. They discuss whether this increased transparency will reshape how these deals are negotiated and the broader impact on community relations.
The episode also covers exciting developments in personal AI technology:
- Ghost’s new $3,499 dedicated AI computer designed to run AI agents continuously. Despite the innovation, the Equity team expresses skepticism about its potential for mass-market adoption. Learn more about Ghost’s AI computer.
- New personal AI assistants like Tab, Underdog, and Hark are emphasizing privacy as a core feature. These startups are exploring business models that could transform AI agents into effective salespersons, balancing user privacy with monetization. Discover Tab, Underdog, and Hark.
- Uber’s $2.3 billion all-cash acquisition of ezCater marks a significant expansion into the office catering space, highlighting ongoing consolidation in the food delivery and corporate services markets. Read more about Uber’s ezCater deal.
Looking ahead, TechCrunch invites listeners to join them at TechCrunch Disrupt 2026. Attendees can use the code Equity25 for 25% off tickets and catch the Equity team live on the Builders Stage Tuesday at 9 am.
For those interested in staying current on these topics, Equity is available on YouTube, Apple Podcasts, Overcast, Spotify, and other podcast platforms. Follow Equity on X and Threads at @EquityPod for updates.
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