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The European Commission on Monday proposed a common rating system for data centers to improve transparency over their energy and water consumption and support their integration into Europe’s energy system.
According to the Commission, the ratings would apply to individual data centers with a capacity of more than 500 kilowatts. They would assess whether facilities reuse heat generated by their equipment, add clean energy supplies and adjust electricity use to reduce pressure on power grids.
Ratings to measure energy and water efficiency
Data centers that use resources efficiently and can shift their power consumption could help reduce electricity system costs, support grid stability and facilitate the integration of renewable energy, the Commission said.
The proposal comes as the European Union seeks to triple its data center capacity over the next five to seven years to meet growing computing needs and reduce reliance on technology from outside the bloc.
However, the expansion could put additional pressure on electricity supplies and water resources while increasing carbon emissions, the Commission warned.
Reusing about half of the heat generated by European data centers could meet the heating needs of four million households, it said.
First sustainability labels expected in 2027
The Commission has also opened a public consultation on proposed minimum standards for data centers operating in Europe. The consultation will remain open until Dec. 14, 2026.
The European Parliament and the Council now have two months to scrutinize the proposed rating system. They may object to it but cannot amend the text.
The first labels showing individual data centers’ sustainability ratings are expected to be issued in 2027. The Commission plans to review the system by the end of 2028.
Data center electricity use projected to rise
Data centers consumed about 68 terawatt-hours of electricity in the EU in 2024, according to figures cited by the Commission.
Driven by the growth of artificial intelligence, consumption is expected to reach 114 terawatt-hours by 2030, accounting for more than 3% of the bloc’s electricity demand.
The Commission said the measures build on existing EU rules on energy efficiency and data center reporting. They are also part of broader efforts to integrate digital infrastructure into Europe’s energy system.
