Tech Giants Face Pressure Over Environmental Impact
Amazon, Microsoft, and Alphabet’s Google have each recently abandoned the construction of multibillion-dollar data centers due to community opposition. Now, these companies are facing increased pressure from shareholders regarding the environmental impact of their projects.
More than a dozen investors are intensifying their scrutiny of tech companies ahead of annual shareholder meetings this spring. They are seeking more information about the water usage and conservation efforts of these firms as they expand their computing capabilities.
Trillium Asset Management, a Boston-based firm managing over $4 billion in assets, filed a resolution with Alphabet in December. This resolution aimed to gain clarity on how the company plans to meet its existing climate goals, given the rising energy demands of its data centers. Andrea Ranger, director of shareholder advocacy at Trillium, highlighted that while Alphabet pledged in 2020 to halve its emissions and use carbon-free energy sources by 2030, emissions instead rose by 51%. This left investors “in the dark” about the company’s strategy for meeting its goals.
A similar resolution from Trillium last year received support from nearly a quarter of independent shareholders. Meanwhile, Green Century Capital Management’s shareholder advocate, Giovanna Eichner, mentioned discussions with Nvidia about submitting a resolution to ensure that short-term AI gains do not come at the cost of long-term climate and financial risk. However, she declined to share more details.
Water Usage Under Scrutiny
Investors are demanding more transparency regarding the water usage of these tech giants. According to data from market research firm Mordor Intelligence, North American data centers used nearly 1 trillion liters of water in 2025—roughly equivalent to the annual water demand of New York City.
While Meta, Google, Amazon, and Microsoft have all started using closed-loop cooling systems in their data centers, which require significantly less water, the data on this usage varies.
Meta’s 2025 environmental report showed water usage for the sites it owned, but not for those it leased or was under construction. Total usage increased by 51% from 3,726 megaliters in 2020 to 5,637 megaliters in 2024—enough water to supply more than 13,000 homes for a year.
Google’s 2025 environmental report included data for the sites it owns and leases, but not those operated by third parties. Amazon and Microsoft both reported total water usage, but neither provided site-specific breakdowns in their 2025 sustainability reports.
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 added that the company is committed to being a “good neighbor” and is investing in efficiency efforts, bringing new energy online and reducing its water use.
Local Data Requests
“We haven’t seen them disclosing enough about their water consumption (and the) impact on the local community,” said Jason Qi, lead technology analyst at Calvert Research and Management.
A Microsoft spokesperson emphasized that environmental sustainability is “a core value” and that the company is “proactively addressing sustainability challenges and accelerating solutions for long-term impact.”
A Google spokesperson declined to comment, and Meta did not return a request for comment.
Dan Diorio, vice-president of the Data Center Coalition, a lobby group whose members include the Big Four tech firms, noted that improving community engagement has become a top priority over the last year.
“Being upfront with them regarding energy and water use, and so that residents can understand that this project will not stress their resources… and will protect them as rate payers is crucial.”
(Reporting by Simon Jessop in London, Valerie Volcovici in Washington, DC and Supantha Mukherjee in Stockholm. Editing by Dawn Kopecki and Chizu Nomiyama )
