Amazon shifts data center strategy and AI chip financing

Amazon is changing its approach to data center development by abandoning the use of non-disclosure agreements (NDAs) during negotiations with local governments. This move follows a similar decision by Microsoft and aims to reduce community opposition and mistrust. For years, secrecy surrounding these projects has led to hundreds of proposed or enacted moratoria on data center construction in cities ranging from New York to San Francisco.

Separately, Amazon is exploring a financial structure to manage its massive investment in AI hardware. The company is discussing a plan to transfer approximately $8 billion worth of Nvidia Grace Blackwell processors to a special purpose vehicle (SPV). Under this sale-and-leaseback model, the SPV would purchase the chips—funded by issuing bonds—and lease them back to Amazon. This strategy seeks to leverage Amazon’s high credit rating to attract investment-grade capital from insurance companies and pension funds, helping to manage the company's rising capital expenditure forecasts.