Amazon, Microsoft and Google Under Fire for Data Center Resource Use

More than a dozen investors are increasing pressure ahead of upcoming annual meetings, seeking clearer disclosures on water consumption and conservation practices as the technology giants expand their computing infrastructure. According to Reuters, these demands come amid rising concern that the rapid growth of data centers—driven in part by artificial intelligence (AI)—could strain natural resources.

Trillium Asset Management, a Boston-based firm managing over $4 billion in assets, has taken a leading role in this effort. The firm filed a shareholder resolution with Alphabet in December, requesting more clarity on how the company plans to meet its climate commitments given the increasing energy demands of its data operations. According to Reuters, Trillium’s Andrea Ranger said investors remain uncertain about how the company will achieve its targets.

Alphabet had pledged in 2020 to cut emissions in half and rely on carbon-free energy by 2030. However, emissions have instead risen by 51%, leaving investors questioning the feasibility of those goals. A similar resolution filed by Trillium last year received support from nearly a quarter of independent shareholders, signaling growing concern within the investment community.

Other firms are also weighing action. Green Century Capital Management has been in discussions with NVIDIA about a potential resolution aimed at ensuring that short-term gains from AI do not create long-term environmental or financial risks, per Reuters.

Water usage has emerged as a central issue. Data from market research firm Mordor Intelligence shows that North American data centers consumed nearly one trillion liters of water in 2025—an amount roughly equal to the annual water demand of New York City. According to Reuters, investors are increasingly focused on how companies manage this consumption and whether their reporting practices provide a complete picture.

Read more: Bernie Sanders Unveils Bill to Ban Data Centers Until Congress Passes AI Regulation

While companies such as Meta, Google, Amazon and Microsoft have introduced more efficient cooling technologies that reduce water use, reporting remains inconsistent. Meta’s latest environmental report detailed water usage for facilities it owns but excluded leased or developing sites. Its total consumption rose 51% between 2020 and 2024. Google reported data for owned and leased sites but not third-party operations, while Microsoft disclosed overall water use without site-specific breakdowns. Amazon, meanwhile, reported water use relative to energy consumption rather than total figures.

Company representatives have defended their efforts. An Amazon spokesperson said the company is working to increase transparency and invest in efficiency measures, while also aiming to reduce water consumption and support local communities. Microsoft emphasized that sustainability remains a core value and that it is actively working on long-term solutions. Google declined to comment, and Meta did not respond to inquiries, according to Reuters.

Investors argue that more detailed, site-level data is essential for evaluating risks and understanding how projects affect local resources. Jason Qi, a technology analyst at Calvert Research and Management, said companies have not disclosed enough information about water usage and its impact on surrounding communities, per Reuters.

Industry groups acknowledge the need for improved communication. Dan Diorio of the Data Center Coalition said that engaging with local communities has become a priority, emphasizing the importance of transparency around energy and water use to reassure residents that projects will not overburden local resources.

Source: Reuters