In recent months, several multibillion-dollar data center developments have been shelved following resistance from host communities, signaling increasing public unease about the strain such facilities place on local resources. At the same time, shareholders are intensifying demands for greater transparency ahead of upcoming annual meetings, particularly around water consumption and sustainability practices tied to the rapid expansion of artificial intelligence infrastructure.
Investor advocacy groups are playing a central role in this push. Trillium Asset Management, which oversees more than $4 billion in assets, has called on Alphabet to clarify how it intends to meet its climate commitments amid surging energy demands. The company had pledged in 2020 to cut emissions in half and transition to carbon-free energy by 2030, but emissions have instead risen significantly, raising concerns among stakeholders about accountability and execution.
Similarly, Green Century Capital Management is engaging chipmaker Nvidia on potential measures to ensure that rapid advances in artificial intelligence do not come at the expense of long-term environmental and financial stability.
Water Usage Emerges as Key Concern
A major focal point for investors is water consumption. Data from Mordor Intelligence estimates that North American data centers consumed nearly one trillion liters of water in 2025—roughly equivalent to the annual water demand of New York City.
Although companies like Meta, Google, Amazon, and Microsoft have adopted more efficient cooling technologies, such as closed-loop systems, disclosures on water usage remain inconsistent and incomplete. Meta, for example, has reported water usage for facilities it owns but not for leased or developing sites, with total consumption rising sharply between 2020 and 2024. Other firms have published partial metrics, making it difficult for investors to assess full environmental impact.
Industry observers say more granular, site-level data is critical for understanding operational risks and the potential strain on local water supplies. Investors are also seeking clearer insights into how companies plan to replenish or offset water usage in affected regions.
Community Impact and Transparency in Focus
Beyond investor concerns, local communities have increasingly demanded greater transparency about how data center projects will affect energy and water resources. Analysts at Calvert Research and Management note that disclosures to date have fallen short of what is needed to evaluate community-level impacts.
Industry groups such as the Data Center Coalition acknowledge the growing scrutiny, emphasizing that improved communication and early engagement with residents have become essential. Ensuring communities understand resource usage—and are reassured that infrastructure projects will not strain local systems—is now seen as key to gaining public support.
As demand for computing power accelerates, particularly with the rise of AI technologies, the tension between expansion and sustainability is expected to remain a central challenge for the sector.