Microsoft is addressing internal criticism regarding the environmental and social consequences of its artificial intelligence data centers, according to an internal message reviewed by Bloomberg.
The concerns, raised by employees and local communities, center on energy consumption, water usage, emissions and broader community impacts associated with the facilities. Noelle Walsh, Microsoft's head of development, acknowledged in the message that the rapid expansion of AI-driven workloads has complicated efforts to meet prior emission-reduction targets.
Walsh highlighted recent improvements in hardware energy efficiency and reductions in water usage as mitigating steps. The company also plans to develop tens of gigawatts of renewable energy capacity to support its operations. In the message, she emphasized the need for "discipline, transparency and an unrelenting focus on reducing impacts and increasing benefits" in data center development.
The tech sector has faced growing opposition to AI data center construction, with protesters citing environmental degradation, job displacement and broader social destabilization risks. Some Microsoft employees have echoed these concerns, particularly regarding the company's accelerated expansion of AI infrastructure.
Microsoft's shares closed at $513.53 on August 26, up $8.47, or 1.68%, before declining 0.25% in after-hours trading to $512.26 at 3:53 p.m. ET on August 26.
