EU Eyes Data Center Energy Use Ratings

The European Union is introducing a proposal to rate data centers based on their energy and water consumption. This measure aims to preempt public concern as the bloc plans to significantly increase its computing capacity.

The EU aims to triple its data center capacity within the next seven years, seeking to narrow the gap with the United States and China in artificial intelligence development. European Commission vice president for clean transition, Teresa Ribera, emphasized that this expansion must not lead to increased pressure on energy grids or higher costs.

Under the proposed scheme, data centers with a capacity exceeding 500 kW will receive a rating on a colored scale, from A/Green for the most efficient to G/Red for the least efficient. This rating system is designed to inform the public about the environmental impact of these facilities. The scoring will also consider factors like waste heat reuse and the integration of clean energy generation.

Currently, data centers have not become a major political issue in the EU, partly due to the bloc's slower growth compared to the US in AI. However, the International Energy Agency forecasts that the sector's electricity demand could exceed three percent of the EU's total by 2030. EU energy commissioner Dan Jorgensen highlighted the necessity of addressing this growing demand for a sustainable digital transformation.

These energy and resource consumption labels will be automatically generated by the EU based on company reports and will be accessible via an EU database. The first labels are anticipated to be rolled out in 2027. The commission is also exploring the possibility of establishing minimum performance standards for data centers.