Investors crank up heat on Google, Amazon and Microsoft for water-guzzling data center plans

Data centers developed by major technology firms such as Amazon, Microsoft, and Google are facing growing investor concern about their environmental impact.

Based on interviews it conducted, Reuters reported that investors have raised issues about water consumption and potential pollution affecting nearby communities ahead of annual shareholder meetings in the spring. 

In 2025, Amazon, Microsoft, and Google each halted construction of data centers in several U.S. states because of local dissent. 

While artificial intelligence that needs these data centers to operate has a bevy of potential benefits, such as optimizing power grids and supporting farmers and the food supply, its drawbacks are raising concerns at a rapid pace. 

Shareholders want more data on the companies' water usage, according to Reuters. This issue has loomed especially large for communities as more areas face water restrictions due to drought, yet data centers keep going up in these same areas and elsewhere. 

According to market research firm Mordor Intelligence, North American data centers used nearly 1 trillion liters of water in 2025. Investors are concerned about how these companies — like Google, which pledged to cut its pollution by 50% and use carbon-free ⁠energy sources by 2030 — can meet existing climate goals, given the surging energy needs of data centers. 

While these three companies now use closed-loop cooling in their data centers, which requires much less water, the data on that ​use varies. Further, while they have also started disclosing data usage details, they only cover a portion of the centers they manage and don't provide full site-specific numbers. People also have concerns about the efforts taken to replenish the water supplies.

"We haven't ​seen them disclosing enough ⁠about their water consumption [and the] impact on the local community," said Jason Qi, lead technology analyst at Calvert Research and Management, according to Reuters.

"Being upfront with [communities] regarding energy and water use, and so that residents can understand that this project will not stress their resources ... and will protect ​them as ratepayers, is crucial," said Dan Diorio, vice president of ⁠the Data Center ​Coalition, a lobby group whose members include the Big Four tech firms. 

A post to the social platform X agreed with shareholders and dissenting communities, as did many commenters on the post. 

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"Keep fighting data centers," the poster wrote above an announcement of shareholder concern. 

"Keep it up," one commenter agreed. "They're not worth poisoning ourselves and future generations!"

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