What action has the New York State Common Retirement Fund taken regarding tech companies?

The New York State Common Retirement Fund has written to tech companies such as Amazon, Meta, and Alphabet, urging them to prioritize the needs of communities hosting their data centers.

Why are communities restricting data center construction?

Some communities have restricted data center construction due to concerns about the strain on energy grids and the significant water usage associated with these facilities.

How is Microsoft addressing data center sustainability?

Microsoft has committed to ensuring its data centers do not pass on electricity costs to consumers, replenishing the water they use, and paying the full property tax rate.

Home / Business and Economy / Pension Funds Target Big Tech Data Centers

Pension Funds Target Big Tech Data Centers

3 Mar

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Summary

Pension funds urge tech giants to consider community impact.
Concerns include energy grid strain and water usage.
Microsoft cited for replenishing water and paying full taxes.

Pension Funds Target Big Tech Data Centers

Pension funds are increasingly using their investment power to advocate for sustainable practices among major technology companies. The New York State Common Retirement Fund, managing $300 billion, has directly contacted Amazon, Meta Platforms, and Alphabet, among others. This initiative aims to ensure data centers consider their impact on local communities, energy grids, and water resources.

Concerns over significant energy consumption and water usage by data centers have already led to construction restrictions in various parts of the country. In response, some companies are implementing more sustainable operational models. Microsoft, for example, has committed to covering the electricity costs associated with its data centers and replenishing the water they consume, alongside paying full property taxes.

Historically, pension funds have influenced corporate behavior through strategic investments and divestments. Past campaigns have led to improvements in areas like parental controls on digital devices. This latest move signifies a growing trend of institutional investors focusing on environmental and community-related factors within the booming tech sector.

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