Investors confront big tech's AI data centres’ hidden water and energy risks
Data centres that power artificial intelligence are drawing fire not just for their profits, but for their pressure on water, energy, and local communities.
According to BNN Bloomberg, Amazon, Microsoft and Alphabet’s Google have each recently abandoned construction of multibillion‑dollar data centres after community opposition, even as shareholders increase pressure over the environmental impact of existing and planned projects.
The same article reports that more than a dozen investors are seeking more detailed data on the tech giants’ water usage and conservation efforts ahead of annual shareholder meetings this spring, as the companies push to expand computing power.
Trillium Asset Management, a Boston‑based firm with more than US$4bn in assets under management, filed a resolution with Alphabet in December asking how it will meet climate goals as data centre energy demand surges.
Alphabet pledged in 2020 to halve emissions and use carbon‑free energy sources by 2030, yet Trillium says emissions instead rose 51 percent, leaving investors “in the dark” on how it plans to meet those targets.
A similar Trillium resolution last year won support from nearly a quarter of independent shareholders.
BNN Bloomberg also reports that Green Century Capital Management shareholder advocate Giovanna Eichner is 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,” though she declined to give more details.
Water has become a central flashpoint.
North American data centres used nearly 1tn litres of water in 2025, roughly equivalent to the annual demands of New York City, according to data from Mordor Intelligence cited by BNN Bloomberg.
While Meta, Google, Amazon and Microsoft have adopted closed‑loop cooling that requires much less water, disclosure remains uneven.
The article reports that Meta’s 2025 environmental report showed water use at owned sites but not at leased or under‑construction facilities.
Total usage rose 51 percent from 3,726 megalitres in 2020 to 5,637 megalitres in 2024, enough to supply more than 13,000 homes for a year.
Google’s 2025 environmental report included owned and leased sites but not those run by third parties.
Amazon and Microsoft both reported total water use but did not break it down by site in their 2025 sustainability reports.
Josh Weissman, director of infra capacity delivery at Amazon, said the company is “increasingly disclosing site-specific water consumption data where we operate,” BNN Bloomberg reports.
An Amazon spokesperson said it is committed to being a “good neighbor” and is investing in efficiency, “bringing new energy online” and reducing water use.
Investors told BNN Bloomberg that site‑level data is crucial for assessing operational risk and water replenishment, and Jason Qi, lead technology analyst at Calvert Research and Management, said, “We haven’t seen them disclosing enough about their water consumption (and the) impact on the local community.”
A Microsoft spokesperson said environmental sustainability is “a core value” and that the company is “proactively addressing sustainability challenges and accelerating solutions for long‑term impact.”
A Google spokesperson declined to comment and Meta did not return a request for comment.
Dan Diorio, vice‑president of the Data Center Coalition, said improving community engagement has become a top priority, and that being upfront about energy and water use so residents can see that projects “will not stress their resources” is “crucial.”
New physical risks are also emerging.
CNN reports that vast AI data centres are creating “heat islands,” warming nearby land by an average of 3.6 degrees Fahrenheit and, in extreme cases, by up to 16.4 degrees Fahrenheit, affecting more than 340 million people.
University of Cambridge associate professor Andrea Marinoni and colleagues used 20 years of remote‑sensor temperature data and mapped it against more than 6,000 AI “hyperscalers,” filtering out seasonal effects, global warming trends, and other factors.
CNN reports that the temperature increases appeared globally consistent and extended up to 6.2 miles from facilities.
Marinoni said the planned scale‑up of data centres “could have dramatic impacts on society” for the environment, people’s welfare and the economy.
In Canada, the debate is already local.
CBC News reports that Calgary’s recent return to water restrictions has sparked social media claims that AI data centres are a major driver, but the city disputes that.
Nicole Newton, Calgary’s director of climate and environment, cited 2024 Canada Energy Regulator data confirming 11 data centres in the city, but said “data centres that are operating in Calgary are not among our top users.”
Residents account for more than 60 percent of the city’s water use and businesses about 30 percent, and meter data shows data centre use is low compared with other industrial, commercial and institutional customers.
Newton said there is “currently no evidence data centre operations are adversely affecting Calgary’s water supply.”
CBC News also reports on proposed AI data centre development near Regina, where neighbours have raised concerns about water usage and noise.
Documents filed with the Rural Municipality of Sherwood show Bell Canada plans to build on about 65 hectares of land, with the site described as “critical digital infrastructure for research, provincial AI enablement and federal/protected industries.”
The University of Regina and Saskatchewan Polytechnic support the project, but adjacent landowners, who rely on private wells, wrote that the developer’s letter is “completely silent on water” and “says nothing about where the water will come from or how impacts on neighbouring wells will be managed.”
The filing indicates water services will be provided through private cisterns, but total size and capacity remain unclear, and Bell Canada has not returned a request for comment.
David Meyer, an assistant professor of engineering at the University of Toronto, told CBC News that a data centre “uses [water] all at once, in one place,” which can create “a local straining effect” on pipes.
Even so, he said agriculture and urban users draw far more water, and that, relative to overall city consumption, data centres’ share “is not that much.”
