**Google and Amazon’s $1.2 Billion Project Nimbus Cloud Deal with Israel Includes Controversial “Secret Code” Payments, Reports Say**
*C. Scott Brown / Android Authority*
In 2021, Google and Amazon entered into a $1.2 billion agreement with the Israeli government to provide cloud computing services to various government agencies and the military under a contract known as Project Nimbus. New reporting released today reveals that this lucrative deal reportedly includes some unusual and eyebrow-raising terms.
According to an investigation by The Guardian, based on leaked documents from Israel’s Ministry of Finance and collaborated with Hebrew-language publication Local Call and Israeli-Palestinian outlet +972 Magazine, Google and Amazon agreed to send “coded messages” to the Israeli government. These messages allegedly serve to covertly inform Israel when their cloud data has been accessed by foreign investigative bodies, while potentially circumventing Google’s and Amazon’s usual terms of service.
### The “Winking Mechanism” for Covert Communication
Cloud storage providers sometimes hand over customer data to law enforcement or investigative agencies, often under legal restrictions that prevent them from notifying customers. However, to secure the Project Nimbus deal, both Amazon and Google reportedly agreed to what The Guardian calls a “winking mechanism” — a roundabout way of communicating the transfer of data without explicit disclosure.
Here is how this system reportedly works:
– When a foreign authority requests access to Israeli data stored with Amazon or Google, the company sends Israel a payment coded according to the telephone country code of that requesting authority.
– For example, if U.S. authorities access the data, the company sends a payment of 1,000 shekels, referencing the U.S. country code +1.
– If the request comes from Denmark, which has the country code +45, the payment made would be 4,500 shekels.
– In cases where legal orders more explicitly forbid Google or Amazon from hinting at the origin of the data request, the companies are said to send a larger payment of 100,000 shekels.
### Restrictions on Service Withdrawal Amid Human Rights Concerns
The report further states that the Project Nimbus agreement contains clauses that prevent Google and Amazon from suspending or withdrawing their services, even if the Israeli government is found to be violating either company’s terms of service or human rights considerations.
This aspect of the agreement has drawn parallels with a recent case involving Microsoft. Last month, following investigative reporting by The Guardian, Microsoft terminated a cloud services contract with the Israeli military after discovering that civilian surveillance data — including recordings of Palestinian phone calls — had been stored on its Azure cloud platform against the company’s terms.
An unnamed Israeli official quoted in today’s report emphasized that under Project Nimbus, there are “no restrictions” on the types of information Israel may store within Google and Amazon’s cloud systems. Furthermore, either company attempting to withdraw from the contract on similar grounds would reportedly face financial and legal penalties.
### Google and Amazon Deny Wrongdoing
Both Google and Amazon have strongly denied the allegations.
A Google spokesperson told Android Authority:
> “The accusations in this reporting are false, and imply that we somehow were involved in illegal activity, which is absurd. As is common in public sector agreements, an RFP does not reflect a final contract. The idea that we would evade our legal obligations to the U.S. government as a U.S. company, or in any other country, is categorically wrong.
>
> We’ve been very clear about the Nimbus contract, what it’s directed to, and the Terms of Service and Acceptable Use Policy that govern it. Nothing has changed. This appears to be yet another attempt to falsely imply otherwise.”
An Amazon Web Services (AWS) spokesperson also responded to Android Authority, saying:
> “We have a rigorous global process for responding to lawful and binding orders for requests related to customer data. AWS carefully reviews each request to assess any non-disclosure obligations, and we maintain confidentiality in accordance with applicable laws and regulations. While AWS does not disclose customer information in response to government demands unless we’re absolutely required to do so, we recognize the legitimate needs of law enforcement agencies to investigate serious crimes. We do not have any processes in place to circumvent our confidentiality obligations on lawfully binding orders.”
As of this publication, the Israeli Ministry of Finance has not responded to requests for comment.
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https://www.androidauthority.com/google-amazon-project-nimbus-israel-wink-3611415/