Resolution #3: Shareholder Strategy to Address AI Data Centers

Status

The Committee on Resolutions has reviewed this resolution.

Resolution Text:

Resolved, That the 177th Convention of the Diocese of California expresses concern that the emergence of the Artificial Intelligence (AI) industry has spawned the rapid development of AI data centers resulting in a significant increase in the demand for energy, water and land use resources which directly impacts the well-being of our communities, especially  marginalized communities of color; and

Resolved, That this convention builds on previous resolutions of General Convention on Environmental Racism (2000-D005, 2018-A001); Clean Water (2003-D070, 2018-b025, 2024-A167); Renewables, Environmental Stewardship, Advocacy & Public Witness (2009-C011, 2012-C119); and Socially Responsible Investing Guidelines & Strategy (2018-D068, 2022-C016) and submits the following resolution to the 82^nd General Convention:

Resolved, the House of ____________ concurring, That the 82nd General Convention of The Episcopal Church direct the Executive Council of the Domestic & Foreign Missionary Society (DFMS) and its Committee on Corporate Social Responsibility (CCSR), working with the Office of Government Relations (OGR) and major Episcopal stakeholders, to establish and coordinate shareholder strategy to address AI data center impact from Real Estate Investment Trusts (REIT), technology, and utilities sectors in accord with the proposals and strategies of the Interfaith Center on Corporate Responsibility (ICCR); and be it further

Resolved, That the CCSR identify companies building, managing, and operating data centers in the DFMS portfolio and, along with major stakeholders, initiate the appropriate shareholder strategy to mitigate these companies’ impact on water, energy, and industrial emissions in order to protect the well-being of our communities, especially the marginalized; and be it further

Resolved, That the General Convention make this resolution a priority for the triennium by consulting with major stakeholders,  including our ICCR partners, to develop new strategies to hold companies accountable for AI data center impact.

Explanation:

Data Center Growth

The Global Market Outlook of Data Center highlights that AI demand will expand significantly between 2026 to 2030.  These will require energy innovations to meet power grid constraints. Massive cloud computing providers (hyperscalers) will be key driver for growth, resulting in leasing and self-building heavy duty power, special chips and vast data storage needed to run giant artificial intelligence systems.  The sector is experiencing an infrastructure investment super cycle requiring up to $3 trillion by 2030. Roughly 100 gigawatts (GW) of new capacity are anticipated to come online between 2026 and 2030, equating to $1.2 trillion in real estate asset value creation. Tenants will likely spend an additional $1 to $2 trillion to fit out their space with IT equipment.

To meet the growth and building demand, more than 35 GW of data center capacity is under construction in North America, an extraordinary volume by historical standards.  If this pipeline, nearly 60% is leased, while the remaining 40% will be owner-occupied by hyperscalers. Today, 64% of capacity under construction is located in frontier markets. Key beneficiaries include West Texas, Tennessee, Wisconsin, and Ohio.  Texas, when viewed as a single market, could overtake Northern Virginia as the world’s largest data center market by 2030. Abundant energy resources, ample land availability and a business-friendly operating environment support this trajectory.

Interfaith Center on Corporate Responsibility (ICCR)

The Episcopal Church is a founding member of Interfaith Center on Corporate Responsibility. ICCR has advanced several shareholder proposals addressing AI data centers. Their primary goals are holding major tech companies accountable for the massive energy demands of AI infrastructure, the resulting greenhouse gas emissions, and the potential shifting of energy costs onto everyday residential utility consumers.

The specific proposals and engagements ICCR members have focused on include:

• Reporting on Climate Commitments & Energy Demand: ICCR members have co-filed and supported proposals (such as those at Amazon) requesting detailed reports explaining how companies will meet their commitments despite the accelerated global build-out of highly energy-intensive AI data centers;
• Grid Capacity and Cost Impacts: ICCR is tackling the hidden costs of data centers. They are raising alarms about the burden placed on local and regional power grids, specifically demanding transparency on how companies plan to offset their immense electricity draws without shifting infrastructure construction costs onto residential ratepayers;
• Water Usage and Scarcity Risks: Because AI data center cooling requires massive amounts of water, ICCR is scrutinizing facility placements in drought-prone areas and pressing companies to disclose their water stewardship strategies to local communities;
• Broader AI Human Rights and Guardrails: Beyond physical data centers, ICCR engages tech operators to enforce robust human rights due diligence (HRDD) regarding the AI systems hosted in these centers. This includes pushing for transparent policies to mitigate algorithmic bias, prevent AI-driven misinformation, and restrict technology access by certain surveillance and immigration agencies.

According to the 2026 ICCR’s Proxy Resolutions & Voting Guide, the following interfaith partners filed shareholder resolutions with these sectors:

Real Estate Investment Trusts:  Digital Realty Trust Inc.

NorthStar Asset Management and Proxy Impact

Technology: Alphabet Inc. (Google), Amazon.com, and Meta (Facebook Inc.)

Presbyterian Church (USA); Trillium Asset Management; Adrian Dominican Sisters; Mercy Investments; Congregation of Saint Joseph (Ohio); and As You Sow;

Utilities: Dominion Energy and Southern Company

Adrian Dominican Sisters, Mercy Investments, and As You Sow. have filed shareholder resolutions with utilities companies covering the following shareholder themes:

• Climate Commitments Given Growing Data Energy Demand
• Avoid Shifting Costs of New Infrastructure for Data Centers
• Stranded Assets Resulting from Speculative Data Center Demand
• Enhanced Water Risk Disclosure 

References:  

• 2026 ICCR’s Proxy Resolutions & Voting Guide | Interfaith Center on Corporate Responsibility
• 2026 Market Outlook for Global Data Centers | Jones Lang LaSalle Real Estate Research
• Global Data Center Trends 2026 | Coldwell Banker Richard Ellis
• Why Communities Are Revolting Against Data Centers | Horizons from PBS News June 12, 2026
• Data Centers on the fast track have officials racing to catch up and offer regulations | NPR – All Things Considered on July 7, 2026
• How the AI Data Center Boom Impacts Black Communities | KQED News Podcast – updated March 10, 2026

Acts of General Convention:
Environmental Racism
2000-D005  Oppose Environmental Racism
2018-A011  Affirm Commitment to Address Environmental Racism

Clean Water
2003-D070  Work for a Clean Water Policy
2018-B025  Recognize Clean Water as a Human Right and Public Trust
2024-A167  Advocate for the Water Rights of Indigenous Communities and Lands

Renewables, Environmental Stewardship, Advocacy & Public Witness
2009-C011  Directs Advocacy on Renewable Energy and Environmental Stewardship
2012-C119  Support Legislation to Improve Port Conditions and Workers’ Rights

SRI Guidelines & Strategy
2018-D068  Develop Social Responsible Investment Criteria for Guidance
2022-C016  Establish a Shareholder Strategy to Address Carbon-Intensive Lending

Frequently Asked Questions (FAQs)

1. What type of shareholder strategy can apply to hold companies accountable?

The Interfaith Center on Corporate Responsibility (ICCR) applies a collaborative shareholder engagement and advocacy strategy centered on direct dialogue and proxy power to hold companies accountable.

Core Shareholder Strategies

• Corporate Dialogues: Members engage in direct, behind-the-scenes discussions with corporate executives and board members to address environmental, social, and governance (ESG) risks before escalating tensions.
• Shareholder Resolutions: When private talks stall, members file formal proxy proposals asking companies to disclose data, measure operational impacts, or change specific harmful practices.
• Multi-Stakeholder Roundtables: They convene forums that bring together impacted communities, workers, NGOs, and experts alongside company management.
• Public Campaigns and Sign-On Letters: Investors pool capital influence to issue joint public statements, press strategies, and policy letters targeting irresponsible corporate lobbying or human rights violations.

2. The Episcopal Glossary will have many words or acronyms, but here are important terms:

Domestic and Foreign Missionary Society is the official legal and corporate name of The Episcopal Church in the United States.

Environmental racism is the placement of toxic waste sites, factories, and other environmental hazards in neighborhoods mostly populated by people of color or low-income residents: a) Disproportionate Exposure: Communities of color experience higher levels of pollution, dirty air, and unsafe drinking water compared to wealthier or whiter areas;

1. b) Systemic Cause: It happens because industries and governments often look for cheap land where residents have less political power to fight back; c) Health Impacts: People living in these areas suffer from higher rates of asthma, cancer, and other serious health problems.

General Convention is the highest governing and legislative body of The Episcopal Church.

Interfaith Center on Corporate Responsibility (ICCR) is a coalition of over 300 faith-based and values-driven institutional investors that use shareholder advocacy to promote sustainable and ethical business practices.

Fiscal Impact:

None for the 2027 diocesan budget.

Submitted by:

Warren J. Wong, Delegate – St. James, SF; wjwstjames@gmail.com (San Francisco Deanery)

Endorsed by:

The Rev. Justin R. Cannon, Rector – All Saints, San Leandro (Southern Alameda Deanery);

Laura Curlin, Delegate – St. Cyprian’s, San Francisco (San Francisco Deanery);

The Very Rev. Dr. Julia McCray–Goldsmith, Interim Rector – Our Saviour, Mill Valley (Marin Deanery);

The Rev. Peter Levenstrong, Associate Rector – Saint Gregory of Nyssa, San Francisco (San Francisco Deanery);

Don Miller, Delegate – St. Clement’s, Berkeley (Alameda Deanery);

The Rev. Jennifer Nelson, Chaplain to the Retired Clergy (Southern Alameda Deanery);

The Rev. Dr. Marisa Tabizon Thompson, Rector – Epiphany, San Carlos {Peninsula Deanery};

The Very Rev. Deborah White, PhD, Rector – Grace, Martinez (Contra Costa Deanery);