Investors are demanding detailed water and electricity consumption data from Amazon, Microsoft, and Google's U.S. data centers amid environmental concerns and project cancellations.
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Major investors are ramping up pressure on Amazon, Microsoft, and Google, demanding detailed information about water and electricity consumption at their U.S. data centers. Reuters reports that these requests have intensified following the cancellation of several multi-billion-dollar data center projects due to community protests and environmental concerns. According to Mordor Intelligence, data centers in North America used nearly 1 trillion liters of water in 2025.
Trillium Asset Management, a Boston-based investment firm focused on environmental standards, has sent Alphabet a request asking the company to explain how it plans to meet climate goals set back in 2020. Six years ago, Alphabet pledged to halve emissions and transition to carbon-free energy by 2030, but Trillium data shows emissions have actually increased by 51%.
Water consumption remains a critical issue, especially for AI-related data centers. For instance, generating just 100 words using GPT-4 requires about three bottles of water. While many companies are implementing closed-loop cooling systems, a significant portion of water is used indirectly—to produce the electricity that powers these data centers.
Investors are calling for disclosure at the individual facility level to better assess operational risks and community impact. Amazon says it is gradually releasing site-specific data and emphasizes efficiency and water reduction efforts. Microsoft highlights environmental sustainability as one of its core values, while Google has so far declined to comment. Meanwhile, the pace of building new AI-focused data centers remains high, raising questions about the rationale behind massive funding for new projects.