Key facts
- AWS CEO Matt Garman stated the company has stopped using NDAs with government agencies for data center projects.
- Garman claimed data center water consumption is 0.5% of U.S. industrial water usage.
- Garman said data center generators run 99.9% of the time.
- Amazon has contributed over $1 billion to communities with data center presence in the past three years.
- Critics argue data center backlash is a crisis of trust, with some dismissing tech companies' arguments.
Amazon Web Services CEO Matt Garman has pushed back against widespread criticism of the company's data centers, addressing concerns about their environmental impact and community benefits. In a blog post, Garman announced that AWS has stopped using nondisclosure agreements (NDAs) with government agencies for its data center projects, a move aimed at increasing transparency.
Garman also sought to counter common criticisms, stating that direct data center water consumption accounts for only 0.5% of all industrial water usage in the U.S., significantly less than industries like golf courses and almond farming. He also claimed that data center generators are idle 99.9% of the time, running primarily for required maintenance testing.
Regarding electricity costs, Garman argued that increases in some areas are due to aging grid infrastructure rather than data centers themselves. However, an independent watchdog recently attributed a 76% year-over-year price increase on America's largest electrical grid primarily to data centers.
On the issue of pollution, Garman pointed out that critics often focus on maximum permitted emissions. He noted that a planned Amazon data center in Texas is permitted to release 33 million tons of carbon dioxide annually, more than any other U.S. power plant. He also reiterated Amazon's commitment to contributing over $1 billion to communities with a significant data center presence over the past three years.
Garman warned that moratoriums on data center development could hinder U.S. AI progress and allow China to surpass the U.S. He suggested that backlash against data centers is fueled by disinformation, drawing a parallel to claims made by Donald Trump about foreign interference in protests. Critics, however, such as environmental activist Erin Brockovich and writer Jasmine Sun, have expressed skepticism, viewing the backlash as a "crisis of trust" and dismissing tech companies' arguments.