Investors are urging Amazon, Microsoft, and Google to address their water and power consumption in US data centers
Amazon, Microsoft, and Alphabet’s Google have recently halted the construction of multibillion-dollar data centers due to community opposition, and now these companies are facing shareholder pressure regarding the environmental impact of their projects.
Over a dozen investors are intensifying their scrutiny of companies in advance of the annual shareholder meetings this spring, demanding greater transparency regarding the tech giants’ water usage and conservation initiatives as they aim to enhance their computing capabilities, as reported in interviews with Reuters.
Trillium Asset Management, a Boston-based firm managing over $4 billion in assets, submitted a resolution to Alphabet in December requesting clarity on how the company plans to achieve its current climate goals in light of the increasing energy demands of its data centers, according to Andrea Ranger, director of shareholder advocacy, in an interview.
In 2020, the company committed to reducing its emissions by 50% and transitioning to carbon-free energy sources by 2030. However, Trillium reported that emissions increased by 51%, leaving investors uncertain about the company’s strategy to achieve its goals.
A comparable resolution from Trillium last year garnered backing from almost a quarter of independent shareholders.
Giovanna Eichner, a shareholder advocate at Green Century Capital Management, indicated that the firm was in talks with Nvidia regarding the submission of a resolution aimed at ensuring that short-term AI profits do not jeopardize long-term climate and financial stability, though she refrained from providing further details.
QUESTIONS RAISED ABOUT WATER USAGE
Shareholders are seeking additional information regarding the companies’ water consumption. In 2025, North American data centers consumed nearly 1 trillion liters of water, as reported by market research firm Mordor Intelligence, which is approximately equal to the yearly needs of New York City.
Meta, Google, Amazon, and Microsoft have all begun implementing closed-loop cooling systems in their data centers, which significantly reduce water usage; however, the data regarding this implementation varies.
Meta’s 2025 environmental report presented data on water usage for its owned sites, yet it did not include information for those that were leased or under construction. Total usage increased by 51%, rising from 3,726 megaliters in 2020 to 5,637 megaliters in 2024, which is sufficient water to supply over 13,000 homes for a year.
The 2025 environmental report from Google presented data for the sites it owns and leases, excluding those managed by third parties. Microsoft disclosed its overall water usage in the sustainability report but did not provide site-specific details. In its 2025 sustainability report, Amazon did not disclose total water usage data; rather, it presented information on water usage per unit of power.
Josh Weissman, director of infra capacity delivery at Amazon, stated that the company is “increasingly disclosing site-specific water consumption data where we operate.” An Amazon spokesperson stated that the company is dedicated to being a “good neighbor” and is investing in efforts to improve efficiency, bring new energy sources online, and decrease its water consumption.
Investors emphasized the importance of site-level data, stating that it is essential for evaluating operational risks and the company’s effectiveness in managing them. They also expressed a desire for more information regarding initiatives aimed at replenishing water supplies.
LOCAL DATA REQUESTED “We haven’t seen them disclosing enough about their water consumption and the impact on the local community,” stated Jason Qi, lead technology analyst at Calvert Research and Management.
A Microsoft spokesperson stated that environmental sustainability is “a core value” and that the company is “proactively addressing sustainability challenges and accelerating solutions for long-term impact.”
A spokesperson for Google chose not to provide a comment, while Meta did not respond to a request for comment.
Dan Diorio, vice-president of the Data Center Coalition, a lobby group with members that include the Big Four tech firms, stated that enhancing community engagement has emerged as a key focus over the past year.
“It is essential to be transparent with them about energy and water usage, ensuring that residents comprehend that this project will not place a strain on their resources and will safeguard them as ratepayers.”
