Stories
EU Mandates Data Centers Disclose Energy & Water Efficiency Amidst AI Boom

- •The European Commission proposed new rules requiring data centers in Europe to disclose their energy and water efficiency.
- •The EU aims to triple its data center capacity in seven years to support AI development and reduce reliance on US Big Tech, raising concerns about resource consumption.
- •A proposed rating scheme will make efficiency information transparent, but will not impose limits on resource use or require disclosure of total power consumption.
- •Operators of facilities with 500 kW capacity must use an EU-designed labeling system to disclose energy and water efficiency.
- •Data centers will also need to disclose their water use in relation to local water stress and their ability to offer services like waste heat reuse to local energy systems.
Key Questions Answered
The European Commission proposed a rating scheme and labelling system requiring data centre operators with a capacity of 500 kW to disclose their energy and water efficiency. Facilities must also share how their water use relates to local water stress levels and whether they can offer services like waste heat re-use.
The EU plans to triple its data centre capacity over a seven-year period to support artificial intelligence development and reduce reliance on US Big Tech. Data centre capacity is projected to more than double by 2030, reaching 28 gigawatts compared to 12 GW last year.
EU countries and lawmakers have a two-month window to object to the proposed rules before they formally enter into force. Additionally, this new labelling system could serve as a precursor for mandatory minimum standards governing water and energy efficiency in Europe.





