Project Nimbus: Israel's $1.2 Billion Cloud Deal with Google and Amazon Includes Secret "Winking Mechanism" and Service Restrictions

A 2021 cloud computing agreement between the Israeli government, Google, and Amazon, known as "Project Nimbus," reportedly includes controversial clauses, such as a "winking mechanism" designed to bypass global laws and a prohibition on restricting Israel's cloud access. The $1.2 billion deal requires Google and Amazon to alert Israel through coded payments if legally compelled to hand over Israeli data to foreign authorities while under a gag order. This arrangement, revealed in leaked documents, has raised concerns among legal experts regarding potential violations of US laws.

The "winking mechanism" mandates that if either tech giant is forced to disclose Israeli data to foreign authorities and is simultaneously prevented from revealing this action, they must send a coded payment to Israel within 24 hours. The payment amount corresponds to the foreign country's dialing code; for instance, a US request would trigger a 1,000 shekel payment, while an Italian request would be 3,900 shekels. If the companies cannot even disclose the requesting country, a flat payment of 100,000 shekels is required, as outlined in the tweet content.

Legal experts have described this scheme as "clever but risky," suggesting it could contravene US laws that require companies to maintain the secrecy of subpoenas. The Israeli government's demand for this mechanism stemmed from concerns about losing control of its data to overseas law enforcement. Both Google and Amazon reportedly agreed to these terms to secure the lucrative contract.

Furthermore, Project Nimbus prohibits Google and Amazon from ever restricting Israel's access to their cloud services, even if the usage is linked to human rights violations. This clause contrasts sharply with Microsoft's recent action, which saw the company cut off Israeli military access to some cloud services after discovering their use in mass surveillance of Palestinians, violating Microsoft's terms of service. Under the Nimbus terms, Google and Amazon are contractually unable to take similar unilateral action.

The deal, which runs for an initial seven years, aims to provide comprehensive cloud solutions for Israeli government agencies, including the defense establishment. Critics, including employees and human rights organizations, have voiced concerns that the advanced AI capabilities offered through Project Nimbus could be used for surveillance and other activities in the occupied Palestinian territories. Both Google and Amazon have faced scrutiny and employee protests over their involvement, with internal documents reportedly showing Google lawyers had concerns about potential human rights implications before the contract was signed.