The EU Will Force Data Centers To Disclose Their Energy And Water Use

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The bloc has proposed a sustainability labeling system ahead of bringing in minimum data center performance standards.

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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...

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