OpenAI drops NDAs for data center projects

Following strong voter pushback against data center expansion in this week's midterms, OpenAI is changing how it deals with local communities.

The ChatGPT maker announced it will no longer use non-disclosure agreements (NDAs) with public officials on data center projects. For years, tech giants have relied on NDAs to keep land buys, massive water usage, and power grid strain behind closed doors.

Pulling back the curtain on compute

Under the new policy, OpenAI says it will allow only narrow protections strictly covering legitimate security information, trade secrets, or proprietary and competitively sensitive data.

On top of ditching secrecy, OpenAI pledged to pay the full cost of the electricity it uses and the infrastructure needed to serve its facilities. The company is also rebranding its sites as "compute campuses" and setting up a "local compact" for each location, which includes publishing projected job creation numbers and regular local hiring reports.

OpenAI isn't the first to feel the heat. Amazon made a similar pledge in October to stop using NDAs with government agencies on data center deals.

Why it matters

The real bottleneck for frontier AI is no longer just chips; it is physical power grids and local politics.

When communities feel their utility bills are rising to subsidize AI training runs, political backlash is inevitable. Moving away from secretive backroom deals is a necessary pivot for OpenAI and Amazon. AI giants are realizing that building massive infrastructure requires acting like a transparent utility partner rather than a secretive tenant.