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EU Proposes Mandatory Energy and Water Use Disclosure for Data Centers

🔄 Updated 2d ago
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Key points

  • EU proposes mandatory disclosure for data center energy and water use.
  • Applies to data centers with capacity above 500 kW.
  • Disclosure system will inform future minimum performance standards.
  • Consultation period open for two months before rules come into force.

New Disclosure Requirements

The European Commission has proposed new regulations that will mandate data center operators to disclose their energy and water usage. This requirement applies to data centers with a capacity exceeding 500 kW and will utilize a common rating system. The goal is to provide transparency regarding the environmental footprint of these facilities.

Addressing Growth and Resource Strain

The EU plans to triple its data center capacity by 2030 to enhance digital sovereignty. This expansion is projected to increase electricity consumption by data centers from 68 TWh in 2024 to 114 TWh by 2030, accounting for over three percent of the bloc's total electricity use. The Commission acknowledges that this growth could strain power grids and natural resources like water, as well as increase carbon emissions.

The new rules are intended to ensure data centers are energy- and water-efficient and integrated sustainably into the energy system, mitigating the environmental impact of this anticipated growth.

Details of Disclosure

While the rating scheme does not currently limit total power or water consumption, it requires operators to disclose how their water use relates to local water stress levels. Data centers will also need to report on contributions to the local energy ecosystem, such as repurposing waste heat. This information will be crucial for future regulatory actions.

Path to Minimum Standards

The proposed disclosure system is seen as a precursor to establishing minimum performance standards for data centers across the EU. This system is comparable to existing energy labeling for appliances and cars, providing a standardized way to assess sustainability. The Commission has initiated a two-month consultation period for the European Parliament and Council to review the rules.

Implementation Timeline

If approved following the consultation, data centers are expected to begin publishing these sustainability labels starting next year. This marks a significant step towards greater environmental accountability within the EU's digital infrastructure sector.

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Reporting from

The European Union has proposed new rules requiring data centers with over 500 kW capacity to disclose their energy and water consumption through a common rating system. This initiative aims to manage the environmental impact of projected data center growth, which is expected to triple by 2030, and will inform future minimum performance standards.