Investors Demand Transparency from Amazon, Microsoft, and Google on Environmental Impact of Data Centers
Investors press Amazon, Microsoft and Google on water, power use in US data centres
The Economic TimesImage: The Economic Times
Investors are pressuring Amazon, Microsoft, and Alphabet's Google to disclose detailed information about water usage and energy consumption in their data centers. This comes after the companies faced community opposition to new projects and have been criticized for rising emissions despite previous climate commitments.
- 01Investors are seeking more transparency on water and energy use from major tech companies.
- 02Trillium Asset Management filed a resolution with Alphabet regarding climate goals amid rising emissions.
- 03North American data centers used nearly 1 trillion liters of water in 2025, comparable to New York City's annual demand.
- 04Tech companies are adopting closed-loop cooling systems to reduce water usage but lack detailed reporting.
- 05Community engagement on resource use has become a priority for tech firms amid investor scrutiny.
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Investors are increasingly demanding transparency from Amazon, Microsoft, and Alphabet's Google regarding their environmental impact, particularly concerning water and energy use in data centers. With community opposition leading to the abandonment of multibillion-dollar projects, over a dozen investors are ramping up pressure ahead of upcoming shareholder meetings. Trillium Asset Management, which manages over $4 billion, filed a resolution with Alphabet in December, questioning how the company plans to meet its climate goals after emissions rose 51% instead of declining as pledged. In 2025, North American data centers are projected to consume nearly 1 trillion liters of water, equivalent to New York City's annual demand. While tech giants have begun implementing closed-loop cooling systems to minimize water usage, the lack of site-specific data raises concerns among investors about operational risks. Companies like Amazon and Microsoft are being urged to enhance their community engagement and provide clearer insights into their resource consumption to reassure local residents and investors alike.
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Increased transparency about water and energy use could lead to better resource management and community relations, potentially affecting local residents' access to these resources.
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