Shareholders in Big Techs Raise Alarm Over Water Usage in Data Centers
In Focus
- Investors want data on conservation and water usage in AI projects
- The data will help them assess operational risks better
- Meta and Google have recorded significant increase in water usage in data centers
Shareholders are increasingly spotlighting water usage in data centers by big techs. According to Reuters, investors are asking tech giants to provide data on conservation efforts and water usage in AI infrastructural development ahead of annual shareholders meetings.
In recent months, opposition from local communities has forced Alphabet, Amazon, and Microsoft to halt data center projects worth billions of dollars.
Alphabet Shareholders have Filed a Resolution
Alphabet is among the tech companies that have received resolutions from shareholders. In December 2025, Trillium Asset Management sought to know how the Google parent company plans to meet its current climate goals amidst rising demand for data center power in the U.S.
In 2020, Google committed to cut its emissions by 50% by 2030 through the use of carbon-free energy sources. However, Trillium claimed that emissions have instead risen by 51%, causing investors to question the company’s plan to meet its environmental goals.
While opening a data center in London last year, Google announced that it signed a deal with Shell Energy Europe to serve as its Carbon-Free Energy Manager in the U.K.
Heavy Water Usage in North America
Data from the research company, Mordor Intelligence showed that data centers in North America used close to 1 trillion liters of water in 2025. This amount is approximately the annual demand for New York City.
Google, Meta, Microsoft, and Amazon are adopting methods like closed-loop cooling that require less water in AI facilities. But shareholders across the four tech companies want more data on their water usage. Analysts argue that the companies have not been transparent about the environmental impact of AI data centers.
“We haven’t seen them disclosing enough about their water consumption (and the) impact on the local community,” Technology analyst at Calvert Research and Management, Jason Qi noted.
Gaps in Sustainability Reporting by Tech Companies
While the tech giants produce environmental reports, information gaps still persist. Last year, Meta included water usage data on its sites in its environmental report. However, the report did not capture data for its leased sites or those under development.
Notably, the company’s water usage surged 51% in 2024, from 3,726 megalitres in 2020 to 5,637 megalitres, enough to supply over 13,000 homes for a year. Earlier this year, Meta signed three nuclear energy deals as part of a long-term plan to secure power for AI data centers.
Similarly, Google’s environmental report for 2025 highlighted water usage data for owned and leased sites, without including third-party facilities. Microsoft and Amazon include water usage data in their 2025 sustainability reports. However, the companies did not disaggregate the data by site.
Why Does Sustainability Data Matter?
Investors need site-level data to better assess operational risks and evaluate a company’s performance in managing them. As the tech giants hold shareholder meetings this spring, investors will be seeking to know what efforts are in place to replenish water supplies.
Lobby groups like the Data Center Coalition want big techs to prioritize community engagement as they build AI infrastructure.
