The EU will force data centers to disclose their energy and water use
The European Union's regulatory arm has proposed rules that would force data center operators to disclose their energy and water use through a common rating system. The European Commission says this will cover data centers with a capacity above 500 kW.
The bloc wants to triple its data center capacity within the next seven years in a bid to bolster its digital sovereignty, which includes reducing its dependence on US tech companies. It acknowledges that increasing the number of data centers in the region could strain power grids and natural resources like water while increasing carbon emissions.
The Commission cited stats from the International Energy Agency indicating that data centers consumed 68 TWh of electricity in the EU in 2024. Due in large part to the race to build out compute power for artificial intelligence, that figure is expected to increase to 114 TWh by 2030, which would account for over three percent of the bloc's total electricity use.
The Commission said in a press release that, to limit the impact of data centers on electricity and natural resources, it's essential that they're "highly energy- and water-efficient and sustainably integrated in the energy system."
As things stand, the rating scheme won't require data centers to disclose their total power use or limit how much power or water they soak up. However, they'll have to divulge details of how their water use relates to water stress levels in the local area, as Reuters notes. Data center operators will also need to disclose whether they're feeding back into the local energy ecosystem by, for instance, repurposing waste heat.
The EU plans to establish minimum performance standards for data centers across the bloc. The new disclosure system — which seems similar to the energy labeling system for appliances and cars — could play a factor in that.
The Commission has opened a two-month consultation period for the European Parliament and Council to scrutinize (and potentially object to) the rules before they come into force. If all goes to plan, data centers are expected to start publishing the sustainability labels next year.
