Big Tech Pressure: Investors Demand Power and Water Data

Three big tech companies are being pressed over the environmental implications of their projects, as investors flag water risk as an emerging threat by data center power surges.

Microsoft, Amazon and Google are actively expanding their computing power, and more than a dozen investors are seeking more data on power and water usage ahead of upcoming spring shareholder meetings.

Scrutiny by Trillium Asset Management claims that Alphabet left investors "in the dark" about meeting sustainability goals. In 2020, Alphabet pledged to halve its emissions and use carbon-free energy sources by 2030 – however, Trillium claims emissions rose by 51%. 

The Boston-based firm, worth more than US$4bn in assets under management, filed a resolution with Alphabet in December last year seeking clarity on how the tech giant will meet sustainability targets given the demand of its data centres, according to reports from Reuters.

Why are tech giants under fire?

The pressure from investors comes as all three companies have recently scrapped construction plans for multi-billion dollar data centres following pushback from locals.

Water usage is a significant concern for investors assessing data centre sustainability. According to market research cited by Reuters, North American data centres used nearly one trillion litres of water in 2025, roughly equivalent to the annual demands of New York City.

Despite efforts to improve efficiency, disclosure remains inconsistent across company reports. In its 2025 sustainability report, Meta revealed water usage for sites it owns but excluded leased or developing locations.

Its total consumption has risen from 3,726 megalitres in 2020 to 5,637 megalitres in 2024, which equates to enough water to supply more than 13,000 homes for a year.

Google's 2025 environmental report showed data covering owned and leased facilities but omitted third-party sites.

Microsoft provided total water usage figures but did not break them down by location.

Amazon took a different approach, disclosing water use relative to power consumption rather than revealing total water usage data.

Josh Weissman, Director of Infra Capacity Delivery at Amazon, told Reuters the company was "increasingly disclosing site-specific water consumption data where we operate".

An Amazon spokesperson also added that the company aims to be a "good neighbour" while investing in efficiency, expanding energy supply and reducing water use.

Investors argue that site-level transparency is essential. Detailed reporting allows them to assess operational risks and understand how facilities affect local water systems in regions where resources are already constrained.

Data gaps and local impact concerns

Beyond aggregate figures, investors are seeking insight into how data centre operations are affecting local communities. Water replenishment efforts and regional impact assessments are emerging as key areas of focus.

Jason Qi, Lead Technology Analyst at Calvert Research and Management, told Reuters: "We haven't seen them disclosing enough about their water consumption (and the) impact on the local community."

A Microsoft spokesperson also said that environmental sustainability remains "a core value" and that the company is addressing challenges while accelerating long-term solutions. Google declines to comment, while Meta does not respond to requests from Reuters.

Industry groups acknowledge the growing importance of transparency.

Dan Diorio, Vice President of the Data Center Coalition, told Reuters: "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."

As demand for AI and cloud services expands, data centres require increasing levels of power and cooling. 

While Meta, Google, Amazon and Microsoft have all adopted closed-loop systems that reduce usage, the variation in reporting makes comparisons difficult.

The issue is not only environmental but also financial. Insufficient disclosure can obscure risks tied to regulation and community opposition.

As a result, shareholder resolutions and engagement are becoming a more prominent mechanism for pushing companies to align operational growth with sustainability expectations.