In a significant move, more than a dozen investors are urging major technology companies, including Amazon, Microsoft, and Google (Alphabet), to disclose detailed information regarding the water and energy consumption of their data centers, particularly those supporting artificial intelligence (AI) operations. This heightened scrutiny comes in advance of annual shareholder meetings and reflects growing concerns about the environmental impact associated with the substantial resources required to maintain AI infrastructure.
The demand for transparency has intensified as these corporations have faced backlash from local communities, leading to the cancellation of several multi-billion dollar infrastructure projects. A report from research firm Mordor Intelligence highlighted that North American data centers consumed nearly one trillion liters of water in 2025 alone, raising alarms among investors.
Water usage is becoming a critical issue for AI data centers. Estimates suggest that generating just 100 words using OpenAI's GPT-4 consumes the equivalent of three water bottles. Alarmingly, some studies indicate that AI data centers may use more water annually than the total amount of bottled water consumed by people worldwide.
While the largest cloud providers have attempted to address the issue by implementing closed-loop cooling systems to conserve water, a significant portion of water consumption remains indirect. A 2024 study revealed that these data centers indirectly used around 800 billion liters of water through the generation of necessary electricity. Thus, most of the water usage occurs outside the physical data centers themselves.
Investors are calling for comprehensive reports for each facility, as they believe that the current level of disclosure regarding the impact of data centers on local ecosystems is grossly insufficient. Jason Qi, a leading technology analyst at Calvert Research and Management, emphasized the importance for corporations to accurately report their effects on surrounding communities.
In response to the investors’ concerns, Josh Weissman, Amazon's Director of Infrastructure, stated that the company is increasingly providing data on specific facilities to foster good relationships with local communities. Microsoft representatives echoed these sentiments, asserting that environmental sustainability is a core value for the company. Meanwhile, Google declined to comment, and Meta did not respond to inquiries.
This push for greater transparency could reshape the operational strategies of tech giants, compelling them to prioritize sustainability initiatives. As investors focus more on environmental accountability, competitors may feel pressure to enhance their own disclosures and sustainability practices to remain appealing in the eyes of stakeholders.
Informational material. 18+.
