Amid widespread blowback against the spread of data centers, Microsoft on Wednesday announced it is abandoning its practice of secrecy with local governments when deploying new facilities.
“[W]e’ve made the decision that being transparent with the communities where we operate or seek to operate is paramount. This shift is about strengthening public trust, enabling better dialogue, and ensuring that our growth is matched by meaningful engagement,” the company said in a blog post.
The Redmond, Wash., tech giant said it uses non-disclosure agreements (NDAs) in early stages of development to protect commercial information, address security needs and navigate regulatory and permitting processes. That will no longer be the “default mechanism,” said Rima Alaily, Microsoft’s infrastructure legal affairs team lead, on LinkedIn.
“We will continue to use NDAs in connection with private transactions when acquiring land, and we will continue to rigorously protect our trade secrets and datacenter design information,” Alaily added.
The company is terminating any existing, active NDAs worldwide.
Microsoft in January launched a “community first” initiative in response to growing opposition from people across the country worried about data center impacts on higher electricity bills and dwindling water supplies.
The plan pledges to pay the company’s full power costs, reject local property tax breaks, replenish more water than it uses, train local workers, and invest in AI education and community programs.
While the company is internally taking action to address community concerns, it was a key player in defeating Washington state legislation mandating data center transparency and restrictions on environmental impacts. Microsoft, which has roughly 30 data centers in its home state, publicly opposed the bill shortly before the end of Washington’s legislative session.
Microsoft last fall abandoned plans to build a data center campus in a rural community in Caledonia, Wisc., after the community raised stiff opposition. Residents cited concerns about the project’s secrecy and its potential impacts on electric bills and quality-of-life issues.
Other companies have likewise faced resistance to the tech center deployments. From May 2024 to March 2025, $64 billion in U.S. data center projects were blocked or delayed due to local opposition, according to a report by Data Center Watch.
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