Every video call, AI query and cloud upload runs through a data centre somewhere, draining power and water non-stop. Brussels wants to triple that computing capacity for the AI race, so the hidden footprint is about to grow fast. The first green labels arrive in 2027, though checking them will stay optional.

That label takes shape in a rating scheme the European Commission presented this Monday. It covers energy and water efficiency, the use of low-emission electricity and contribution to the wider energy system. The measure comes as the EU seeks to triple its data centre capacity, aiming to support artificial intelligence development and greater sovereignty. By 2030, data centres are projected to consume more than three per cent of total EU electricity demand.

“Tripling our data centre capacity cannot mean tripling the pressure on our grids, our water and our energy bills,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition. “That starts with transparency, rating large data centres depending on their impact on our energy system. Efficient, flexible, powered by additional clean energy and reusing waste heat, this is how data centres become an asset for EU’s energy transition.”

No obligation to display

Data centres with more than 500 kW power demand already have to report information on their energy performance under the Energy Efficiency Directive (EED). The new system will use that information to generate a label automatically. Displaying or using that label, however, will not be compulsory, and operators face no obligation to meet a minimum level of sustainability.

The scheme will assess three dimensions: power-use efficiency, water-use efficiency and the use of low-emission energy sources. It will provide information on grid services, readiness to reuse waste heat and whether a facility contributes to additional clean energy generation. While the label focuses on efficiency, it does not show how much electricity a facility consumes. 

Only 36 per cent of data centres had to submit information in the first reporting period. Some member states have introduced financial penalties for operators that fail to report, with fines reaching around €350,000.

Minimum standards for data centres

Alongside the labels, the Commission is preparing minimum performance standards. They could set binding requirements for areas such as energy and water efficiency. Brussels argues a common EU framework would prevent a patchwork of national rules.

Around half of data centres reported figures above the suggested reference values for energy efficiency, water efficiency, or both. They performed less efficiently than those benchmarks.

Digital sovereignty must go hand in hand with energy responsibility. — Dan Jørgensen, Commissioner for Energy and Housing

“To ensure that the digital transformation truly works for our society, we must address the growing energy demand of data centres,” said Dan Jørgensen, Commissioner for Energy and Housing. “Understanding their energy and resource consumption is the essential first step towards integrating them sustainably into our energy system. Digital sovereignty must go hand in hand with energy responsibility.”