By Simon Jessop, Valerie Volcovici and Supantha Mukherjee
LONDON, April 6 (Reuters) – Amazon, Microsoft and Alphabet’s Google have each recently abandoned construction of multibillion-dollar data centers over community opposition and now the companies are coming under shareholder pressure over the environmental impact of their projects.
More than a dozen investors are cranking up the heat on companies ahead of annual shareholder meetings this spring, seeking more data on the tech giants’ water usage and conservation efforts as they seek to expand their computing power, according to interviews with Reuters.
Trillium Asset Management, a Boston-based firm with more than $4 billion in assets under management, filed a resolution with Alphabet in December seeking clarity on how it will meet existing climate goals given the surging energy needs of its data centers, Andrea Ranger, director of shareholder advocacy, said in an interview.
The company pledged in 2020 to halve its emissions and use carbon-free energy sources by 2030. Yet Trillium said emissions instead rose 51%, leaving investors “in the dark” about how it planned to meet the goals.
A similar resolution from Trillium last year won support from nearly a quarter of independent shareholders.
Green Century Capital Management shareholder advocate Giovanna Eichner, meanwhile, said it was in 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,” declining to share more details.
WATER USAGE QUESTIONED
Shareholders want more data on the companies’ water usage. North American data centers used nearly 1 trillion liters of water in 2025, according to data from market research firm Mordor Intelligence, roughly equivalent to the annual demands of New York City.
While Meta, Google, Amazon and Microsoft have all started using closed-loop cooling in their data centers that require much less water, the data on that usage varies.
Meta’s 2025 environmental report showed water usage for the sites it owned, but not for the ones it leased or were under construction. Total usage rose 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 showed 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 of them broke it down by site in their 2025 sustainability reports.
