Amazon, Microsoft, and Alphabet are facing significant pressure from investors to disclose the environmental impact of their data centers after community opposition led to the cancellation of several multibillion-dollar projects (06/04).

More than a dozen investors are seeking specific data on water and power usage as these companies expand their computing power for artificial intelligence.

Investment Firms Seek Clarity on Climate Commitments

Trillium Asset Management recently filed a resolution with Alphabet to understand how it will meet its 2030 climate goals despite rising energy needs.

While the company pledged in 2020 to halve its emissions, reports indicate that emissions have actually increased by 51% since that time.

Other firms, such as Green Century Capital Management, are in discussions with Nvidia regarding similar sustainability resolutions.

The goal is to ensure that the rapid growth of AI does not result in long-term financial and environmental risks for shareholders.

Rising Concerns Over Industrial Water Consumption

Data centers in North America consumed nearly 1 trillion liters of water in 2025, which is roughly equal to the annual water needs of New York City.

While some companies use closed-loop cooling systems to save water, investors claim that current reporting on this usage is inconsistent and lacks detail.

Meta’s latest environmental report showed a 51% increase in water use between 2020 and 2024, but excluded data for leased or unfinished sites.

Meanwhile, Amazon has provided data on water usage per unit of power rather than total consumption in its most recent sustainability report.

The Push for Local Resource Accountability

Investors and analysts are calling for more transparency regarding how data centers impact the specific communities where they are located.

Groups like Calvert Research and Management argue that companies have not disclosed enough about their water consumption and its effect on local residents.

The Data Center Coalition, which represents the major tech firms, noted that improving community engagement is now a top priority.

Being transparent about energy and water use is essential to prove that these massive projects will not stress local resources or increase costs for taxpayers.

PHOTO: FREEPIK

This article was created with AI assistance.

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