Microsoft, Google confront data centre fears as backlash grows

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInnovationNewsMicrosoft, Google confront data centre fears as backlash growsWater shortages have emerged as a prime concern amid the boom in data-centre constructionAuthor of the article:Alastair Marsh and Olivia RaimondeMicrosoft is focused on initiatives such as making sure data centre-related costs are “ring-fenced,” supporting workers and focusing on water efficiency, Melanie Nakagawa said. Photo by Michael Nagle/Bloomberg via Getty ImagesExecutives at Microsoft Corp. and Alphabet Inc.’s Google countered criticism of the rapid expansion of data centres at this week’s climate meetings in New York.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThey sought to ease the concerns by discussing steps they’re taking to shield consumers from the cost of new facilities, backing the workforce and highlighting efforts related to water usage.The questions “we’re hearing communities asking are really important,” said Melanie Nakagawa, Microsoft’s chief sustainability officer, speaking Wednesday at a Bloomberg Green event in New York. It’s led to discussions about “what communities should expect when it comes to electricity.”Amanda Peterson Corio, global head of data-centre energy at Alphabet’s Google, said one of the biggest obstacles facing data centres is they’re “politically hated on the left and the right, and we’re going into elections, and a lot more money is going to be spent.”Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe resistance is already disrupting projects. Roughly 45 developments worth US$68 billion were blocked or delayed by local pushback in the second quarter of this year, according to a report from research group Data Center Watch. Thirty statehouses also introduced measures addressing issues such as data-centre siting, electricity and water, with many adopting them.Microsoft, Google and Amazon.com Inc., along with Meta Platforms Inc., are leading developers and consumers of data-centre capacity.Microsoft is focused on initiatives such as making sure data centre-related costs are “ring-fenced,” supporting workers and focusing on water efficiency, Nakagawa said.“It is so critical right now, particularly in America, that we are investing in the workforce,” she said.As for water, “one of the things we wanted to be was really transparent,” Nakagawa said. “So earlier this year in our sustainability report, we actually released the data of what is the water usage out of our data centre campuses.”Water shortages have emerged as a prime concern amid the boom in data-centre construction.Kara Hurst, Amazon’s chief sustainability officer, said that 90 per cent of the time the company isn’t using water to cool its data centres.“That’s an important statistic because there’s a lot of misinformation out there about water,” she said.Hurst also called for renewed attention to grid stability, saying that requires sound policies to spur investment. That should include clean energy such as wind, solar and nuclear power, she said Wednesday at the Bloomberg event.“The best thing we can do to make sure we recognize all this economic benefit is all work together to help change the political narrative on this and unlock the bottleneck because the upside is huge,” Google’s Corio said Tuesday during a presentation at the Dynamo Energy Transition Summit in New York.At a climate event on Tuesday, Illinois Governor JB Pritzker said the concerns about data centres are appropriate, citing not only their enormous electricity demand but also water use, noise and zoning issues. But he stopped short of calling for a ban.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.“Just saying we’re going to have a moratorium, I don’t think by itself is the answer,” he said.Instead, Pritzker said states should impose conditions on new facilities: “If we are going to allow them anywhere, we have to make sure they’re bringing their own clean energy and that they’re using closed-loop water systems. We’ve got to require that.”In the emerging markets, there’s little prospect of data centres proliferating where the notion of sharing precious energy resources with AI would be out of place, according to World Bank Group President Ajay Banga.“Emerging markets don’t have a lot of those data centres, and it’s not coming, trust me,” Banga said at the Bloomberg event. “You need computing power. Lots of it. You need electricity. Lots of it. More than what the developed world also has in some cases, let alone these developing countries.”Meanwhile, the world’s biggest banks are using this week’s meetings to position themselves for business from the massive upgrade of the United States grid, which is being pushed to its limits by an unprecedented surge in power demand, largely from data centres.Heather Zichal, JPMorgan Chase & Co.’s global head of sustainability, said the bank plans to meet with more than 100 clients at the event, with financing for grid modernization a key focus of the discussions.“We’re entering an era where access to power increasingly shapes where companies invest, grow and compete,” Zichal said Tuesday in an interview.—With assistance from Leslie Kaufman.We apologize, but this video has failed to load.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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