Jakarta, INTI - Multibillion-dollar data center projects by major technology companies like Amazon, Microsoft, and Google have reportedly been canceled due to community opposition. Pressure is also mounting from investors, who are highlighting high water and electricity consumption as a potential serious risk, especially amidst the growing computing needs of AI.
Ahead of an annual general meeting of shareholders of global technology companies, investors are demanding more detailed transparency regarding resource use, including water consumption, energy requirements, and conservation strategies. These concerns are supported by data from Mordor Intelligence, showing that North American data centers consumed nearly 1 trillion liters of water throughout 2025, equivalent to the annual needs of New York City.
Investors Need Tech Companies’ Transparency
The surge in energy demand is also a concern. Trillium Asset Management submitted a resolution to Alphabet to explain how the company can still meet its climate targets amid the ever-increasing power demand for data centers.
Alphabet previously pledged to cut emissions by 50% and transition to carbon-free energy by 2030. However, investors noted that the company's emissions actually increased by 51%. This situation has led shareholders to question the tech giant's ability to maintain its environmental commitments amid AI expansion.
Similar pressure is also beginning to be directed at other companies in the AI ecosystem. Green Century Capital Management is considering a resolution against Nvidia to ensure that short-term gains from AI do not create long-term climate and financial risks.
Water Consumption is Concerning
Beyond electricity, water consumption is also a critical issue. Environmental reports show that water usage by several tech giants has increased sharply in recent years. In fact, one company's water usage has increased by more than 50% in the past four years, enough to supply tens of thousands of households for a year.
Although tech companies are starting to use more water-efficient closed cooling systems, investors believe that existing reports lack transparency, particularly regarding location-specific data that directly impacts communities. Some only report total usage, others only per unit of power, while detailed location-level data that directly impacts communities remains undisclosed.
This lack of transparency is risking water and electricity supplies in certain areas, which could impact operational costs and even conflict with local communities. Technology companies should be transparent about this matter, as Data Center Coalition emphasized that transparency in energy and water use is key to maintain public trust and ensure that projects do not burden communities.
Conclusion
Data center projects by Amazon, Microsoft, and Google have been canceled due to community opposition. Investors are now concerned with high water and electricity consumption as key risks amid AI expansion, and are demanding more detailed transparency as resource use continues to rise. Concerns about the impact on the environment and local communities are pushing companies to be more transparent and accountable.
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