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Startups & Technology

Amazon and Microsoft drop data center NDAs to win over skeptical public

Amazon has joined Microsoft in pledging to abandon nondisclosure agreements during negotiations with local governments over data center projects. The shift signals a strategic attempt by the tech industry to dismantle the culture of secrecy that has fueled community backlash and prompted a wave of infrastructure moratoriums nationwide.

The move toward transparency arrives as tech giants grapple with intense local resistance regarding property values, electricity consumption, and water usage. Industry analysts suggest that while removing NDAs is a necessary first step, it may not instantly pacify communities that have grown accustomed to being excluded from the planning process. Many critics argue that the industry suffers from a fundamental inability to communicate its value, often defaulting to opaque tactics reminiscent of early ride-sharing expansion efforts.

Despite the recent flurry of moratoriums in cities like San Francisco and across New York, the long-term impact of these local hurdles remains uncertain. Many projects currently face multi-year construction timelines, providing developers with significant breathing room to navigate zoning and environmental reviews. Ultimately, the industry is discovering that the narrative of inevitable technological progress no longer suffices. As public scrutiny intensifies, companies are being forced to justify their infrastructure needs rather than relying on the assumption that communities will simply accept the status quo.

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