The European Commission has proposed new rules requiring data centers across Europe to disclose their energy and water efficiency metrics. The EU plans to triple its data center capacity over the next five to seven years, prompting concerns over the impact on power grids and natural resources. The proposed framework would introduce a common rating system for data centers above 500kW, covering energy and water efficiency, grid-balancing support, waste heat recovery, and renewable energy use. The Commission has also launched a public consultation on minimum data center performance standards, which will run until December.
The proposal will now undergo a two-month review by the European Parliament and Council, which can object but cannot amend the rules. The first data center ratings are expected in 2027, with an initial review planned by the end of 2028. The EU has also launched initiatives to help integrate data centers into its energy system. One brings together data center developers, energy companies, and public authorities, while the AI Grids project aims to develop a pan-European AI foundation model for electricity grids.
The rules follow reports that some major data center operators used an EU legal provision to restrict public access to information about their facilities’ environmental impact. Europe’s data center capacity is expected to grow from about 9.2GW today to more than 17GW by 2030, driven largely by AI. As facilities become larger, the sector’s emissions are also expected to increase significantly. Limited reporting on individual data centers could make it harder for independent bodies to assess their environmental impact and monitor progress toward the EU’s carbon reduction targets.
