Investors Press Tech Giants on Data Center Environmental Impacts

Investors are intensifying pressure on Amazon, Microsoft, and Alphabet's Google to disclose more details about the environmental impact of their expanding data centers, particularly regarding water and energy consumption, as the companies face community backlash that has led to the cancellation of several multibillion-dollar projects.

The scrutiny comes amid the rapid growth of artificial intelligence infrastructure, which requires vast computing power. More than a dozen investors have raised concerns ahead of the companies' annual shareholder meetings this spring, according to interviews with investment firms. Trillium Asset Management, a Boston-based firm overseeing more than $4 billion in assets, filed a resolution with Alphabet in December seeking clarity on how the company plans to achieve its 2020 climate goals of halving emissions and using carbon-free energy by 2030. Instead, Alphabet's emissions rose 51 percent, leaving shareholders seeking specifics on managing surging energy demands from data centers.

A similar Trillium resolution last year garnered support from nearly a quarter of independent shareholders. Green Century Capital Management is in discussions with...