Skip to main content
Company ethical profile

Amazon Web Services, Inc.

How ethical is Amazon Web Services?

Amazon Web Services (AWS) is Amazon’s cloud computing arm. 

AWS owns about a third of the entire cloud market. Amazon has been widely criticised for its practices, including its tax avoidance. 

Active boycotts

There are active boycotts of this company.

Company ethiscore

Subscribe to see this company’s ethiscore.
Subscribe

Already a subscriber? Sign in above.

About company profiles

Since 1989 we've been researching and recording the social and environmental records of companies, and making the results available to you in a simple format.

Learn more about our company profiles   →

How ethical is Amazon Web Services?

Our research highlights many ethical issues with Amazon Web Services. In this article we focus on AWS-specific issues, namely its data centres’ effect on the environment, its political activity and Amazon’s tax avoidance. 

As AWS is a major subsidiary of Amazon, we also include our research on the Amazon company group more broadly: it achieved a low score in all of our ethical categories. It scores 40 points or less in the following categories: animal products, agriculture, climate change, company ethos, conflict minerals, packaging, palm oil, tax conduct, tech sustainability and workers.

To see the full detailed stories, and Amazon's overall ethical rating, please sign in or subscribe.
 

Climate change

According to the Guardian, Amazon’s scope 2 emissions (which come from the electricity it purchases) are 1.2x higher than the company claims. Although Amazon reports on its greenhouse gas emissions, its scope 2 emissions are, for example, calculated using a method (known as market-based reporting) which makes the figures look smaller than they actually are.

Its scope 3 emissions (those in its supply chain) only included Amazon-branded products. According to the organisation Amazon Employees for Climate Justice, Amazon’s own-branded products make up  just 1% of sales. This suggests that Amazon’s scope 3 emissions could be 100 times more than claimed by the company.

Data centres

AWS owns about a third of the entire cloud market

Data centres are buildings full of computers. The computers store the Cloud and all its web pages, databases, video content, photos, and applications. They require huge amounts of electricity to power them and huge amounts to cool them down with air conditioning. Worldwide, almost 600 hyperscale data centres accounted for around 1% or 2% of global electricity demand in 2020.

Data centres are likely a big part of AWS’ overall carbon emissions. According to Data Center Dynamics, AWS operated over 38 million square feet (3.55 million m2) of data centre and office space in 2023. This represents a 14% increase over 2022.

AWS has some data centres in Ireland. According to Not Here Not Anywhere (NHNA), data centres account for about one-fifth of all electricity use in Ireland and it is predicted to increase to over a quarter by 2028. Although renewable electricity generation is on the rise, data centre expansion may outpace this. NHNA says that in some cases “a data centre is used as justification for building new fossil fuel infrastructure”.

Amazon Employees for Climate Justice recently said that despite the company claiming that its operations are run entirely on renewable sources of power, in truth just 22% of power used by the company's data centres is from renewables.

AWS announced in late 2024 that, in order to meet demands for power for its data centres, it is investing more than $500 million (£390 million) in the development of a small modular nuclear reactor.

Water usage

According to a case study by the University of Oxford, up to 43% of data centre electricity in the US is used for cooling. The electricity is used to evaporate or spray water to cool down the equipment. Traditional types of cooling in a relatively small data centre can use 26 million litres of water per year. However, the largest amount of water is used for electricity generation. Fossil fuels and nuclear power all consume water in this way, and even hydroelectric power involves some water loss from reservoirs.

Amazon has recently said that it is going “water positive” but it didn’t take water usage for electricity generation into account. This is a serious concern as, in the race to develop AI, it is planning to spend over $100 billion (£77 billion) building data centres in the next decade.

Politics

Amazon Web Services has a dedicated website titled 'Cloud Computing for U.S. Defense', which advertises the company's products and services for military applications. The page includes case studies on how the U.S. Defense Logistics Agency and U.S. Navy used AWS in their operations.

Tax avoidance

According to our estimates, Amazon's corporation tax avoidance could have cost UK citizens around £433 million in lost taxes in 2023 alone. This figure is in line with those from preceding years.

In 2018 WikiLeaks revealed the location of over 100 AWS data centres around the world. Over 50 were in the US and at least a dozen are built in known tax havens, such as Luxembourg, Ireland and Singapore.

Amazon is required to pay taxes on all its income, including that of AWS. In just the first quarter of 2024, AWS brought in $25 billion in net sales. There are no specific figures available for tax avoidance originating from AWS’. But the fact that many of its data centres are based in tax havens makes it very possible that Amazon has loopholes to avoid paying its due taxes on its income from its cloud computing arm.  

Ownership structure

About ownership structures

Since 1989 we've been researching and recording the social and environmental records of companies, and making the results available to you in a simple format.

Ethical stories

Pre 2024 ratings