On Monday, the European Commission proposed rules requiring data centers in Europe to disclose their energy and water efficiency. Operators of facilities with a capacity of 500 kW or more will soon be required to display an EU label. Member states and the European Parliament have two months to raise objections.
The proposal comes as the EU aims to significantly scale up its data center capacity. That capacity is set to triple within seven years, in part to support AI development and reduce dependence on U.S. Big Tech. However, this growth is pressuring power grids, water supplies, and CO2 emissions.
What the label does and does not do
The regulation does not limit energy or water consumption. Nor are data centers required to publish their total electricity consumption. They must, however, report their efficiency through an EU-designed labeling system.
In addition, operators must indicate how their water consumption relates to water stress in the surrounding area and whether they can provide services to the local energy system, for example by reusing residual heat. The label could serve as a precursor to mandatory minimum standards, which the EU is currently developing.
Data centers currently account for about 2.5 percent of Europe’s electricity consumption, according to a June EU report. Capacity is expected to grow from 12 gigawatts last year to 28 GW by 2030.
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