Amazon is pledging more than $1 billion over the next five years to support communities neighboring its data centers, according to a commitment announced Friday by Amazon Web Services (AWS) CEO Matt Garman. The funding, part of a new community program called “Built Together,” will target local priorities including job training, education, and water preservation projects.
The investment comes as Amazon faces growing backlash from consumers and politicians regarding the rollout of massive AI data centers. Hourly mentions of AI on more than 200 political podcasts more than doubled from August to September. Garman stated in a blog post that the company has already spent over $1 billion in communities with a large data center presence during the last three years.
CEO Warns Foreign Misinformation Threatens Artificial Intelligence Dominance
Garman used a lengthy memorandum to push back against public concerns over the environment, power demands, and jobs, arguing that the U.S. cannot afford to lose the race for AI dominance. He warned that the build-out is so geopolitically significant that foreign countries may be “intentionally seeding misinformation in the US about data centers to trick us into slowing down.”
The CEO noted that more than 100 data center moratoriums are currently being considered across the country. Garman claimed that if these are enacted, the U.S. could be “writing its own losing ticket to this race,” resulting in consequences that last for generations.
Changes to Government Secrecy
As part of its “Data Center Commitment,” Amazon announced it will no longer use nondisclosure agreements (NDAs) with government agencies for data center projects. Garman shared this update via a LinkedIn post. This shift follows a probe by Democratic lawmaker Jamie Raskin into secret deals between tech companies and local officials. The New York Post first reported the investigation, noting it had been underway for months. David Zapolsky, Amazon’s chief global affairs and legal officer, attributed the previous use of NDAs to an industry “reflex” of secrecy, stating it no longer makes sense to require them.
The policy change follows specific local actions in South Bend, where Mayor James Mueller signed an executive order prohibiting city employees from signing NDAs on data centers, and the Common Council unanimously passed measures to ban such agreements. This followed revelations that the city’s Executive Director of Public Works, Eric Horvath, had signed an NDA with AWS in 2023. On Sept. 28, the council voted unanimously to pass an ordinance written by members Sherry Bolden-Simpson and Oliver Davis, as well as a resolution supporting Mueller’s Sept. 16 executive order.
New Operational Standards
Beyond financial investments and the end of NDAs, Amazon’s commitment includes several operational pledges:
- Prioritizing local procurement and hiring.
- Hosting community open houses to encourage dialogue and distribute information.
- Investing in local water and grid infrastructure.
- Ensuring Amazon’s payments cover the necessary energy and infrastructure so costs are not shifted to other customers.
- Providing annual public reports on carbon-free energy, energy use and efficiency, and water use and efficiency.
Garman said the company intends to share plans as early as possible and listen to concerns so communities have the facts to engage as projects progress.
While Amazon is moving toward more transparency, the company has not specified which particular communities will be selected for the “Built Together” funding.
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