ET 07:10

Congress Probing Secret NDAs on AI Data Centers; Amazon, Google, Meta, Oracle Face Pressure

IMP5.5
SNT-0.4▼
CONF75%
Regulatory

Rep. Jamie Raskin, ranking Democrat on the House Judiciary Committee, sent letters to Amazon (AMZN), Google (GOOGL), Meta (META) and Oracle (ORCL) demanding disclosure of nondisclosure agreements signed with government officials and project details, escalating congressional scrutiny of AI data center construction. "When basic terms remain secret, residents cannot weigh a project's pros and cons, hold officials accountable, or protect their own resources," Raskin said. Amazon responded that it no longer uses such NDAs with government partners. Secrecy has become a leading cause of local opposition to data centers, amid concerns over higher electricity prices and heavy water consumption. Polling shows 62% of voters support a moratorium on data center development, and more than $170 billion in AI data center projects have been withdrawn or stalled since 2024 due to community opposition. Raskin and bipartisan lawmakers introduced the No Secrets for Data Centers Act to restrict officials from concealing information via NDAs. Texas Public Utility Commission Chairman Thomas Gleeson said many demand forecasts are overstated, calling much of the power load "speculative." Former commissioner Karl Rábago questioned utilities' motives, saying they are excited about capital investment in load service, not the load itself.

ByTicklex Editorial