Microsoft is ending secrecy deals with towns over its data centers

What happened

Microsoft says it will stop using nondisclosure agreements with local governments about its data centers. These are contracts that keep things secret. It announced this in March. It says it's working to find any active ones worldwide and end them. Where the law allows, it may still try to keep some trade secrets, meaning business details it doesn't want competitors to see, out of public records. One example is design and security details filed for building permits. TechCrunch reports Amazon recently said it would do the same.

What's actually going on

A data center is a big building full of computers that run apps and AI tools. It needs land and permits, so the company has to work with the local government early. A nondisclosure agreement, or NDA, is a contract where one side agrees not to share what it learns. Microsoft says it sometimes used these early on to protect business information, for security, and to follow local permit rules. It calls this common in the industry. On TechCrunch's Equity podcast, reporter Sean O'Kane said people sometimes know a data center is coming but not who will use it.

Ending those contracts doesn't mean you'll see the whole plan on day one. Microsoft says its projects move in stages: buy land, design, level the land, then build. It says it may not have all the details at the start. It says it will try to share them when they're available. Where the law allows, it will still try to keep things like security designs out of public records. Those are the government files residents can usually ask to see. For older secret records, it says it will handle questions from local governments case by case.

Microsoft says the change is about building trust. Some places are also pushing back on data centers. In October, the podcast hosts mentioned pauses on new projects, including in New York. There, permits for large projects are on hold until the state finishes an environmental review. That review is expected to take a year. Host Anthony Ha said dropping these contracts won't automatically win over opponents. But he called it a good first step.

In your life

If a data center is proposed near you, this should make it a bit easier to find out who's behind it. It may also help you ask real questions at town meetings. That's probably where it matters most. These sources only cover Microsoft and Amazon, not other builders.

Be careful about

This is a company promise, not a law. Microsoft can still ask to keep some details private. Details may also show up late, after land is already bought. For old secret records, it only promises case-by-case answers.

Where to get it

There's nothing to sign up for. One small step: look at your city or county meeting agenda for zoning items, which are rules about what can be built where. Look for ones that mention data centers. Or email a local official to ask if any are in the works.