Investors press Amazon, Microsoft, Google on water, power use in data centers

Shareholder advocacy groups, including Trillium Asset Management and Green Century Capital Management, are intensifying pressure on tech giants Amazon, Microsoft, and Google (Alphabet) to enhance transparency regarding the environmental impact of their data centers. This push comes ahead of annual shareholder meetings, driven by concerns over surging water and energy consumption, and previous instances of multibillion-dollar data center projects being abandoned due to community opposition. Trillium Asset Management filed a resolution with Alphabet in December, urging clarity on how the company plans to meet its 2030 climate goals, noting a 51% rise in emissions since a 2020 pledge to halve them. Investors are demanding more site-specific data on water usage, with North American data centers consuming nearly a trillion liters of water in 2025. While companies like Meta, Google, Amazon, and Microsoft have adopted closed-loop cooling systems, the reported data on usage varies significantly, with some companies not disclosing total or site-level water consumption. Josh Weissman, Amazon's director of infra capacity delivery, stated the company is "increasingly disclosing site-specific water consumption data" and is committed to efficiency. Jason Qi, lead technology analyst at Calvert Research and Management, emphasized the importance of site-level data for assessing operational risks and management performance. The Data Center Coalition's Dan Diorio acknowledged that improving community engagement, particularly regarding upfront disclosure of energy and water use, has become a top priority for its members, which include the major tech firms.