Big Tech Data Centers Face Scrutiny Over Secret Plans and Nondisclosure Agreements
Rep. Jamie Raskin, the top Democrat on the House Judiciary Committee, is scrutinizing Big Tech's secret data center plans by sending letters to Amazon (AMZN), Alphabet's Google (GOOG) and (GOOGL), Meta Platforms (META), and Oracle (ORCL). The inquiry focuses on nondisclosure agreements (NDAs) signed with government officials related to data-center build-outs.
Raskin claims that secrecy surrounding these projects prevents residents from weighing costs against benefits, holding officials accountable, or safeguarding their resources. He demands detailed information on each company's data-center portfolio and use of NDAs.
Amazon reportedly no longer uses NDAs with government collaborators on data-center projects. This move may be an indication of what AI companies can expect if Democrats regain power in Congress after the November elections, prompting some in the industry to prepare for a wave of demands and hearings.