From Engadget · Kris Holt · · 1m 30s
EU demands data centers reveal energy and water use
The European Union is forcing data centers to disclose their environmental impact through a new sustainability labeling system.
In brief
The European Union is forcing data centers to disclose their environmental impact through a new sustainability labeling system. Data centers will soon have to publicly report their energy consumption and water use in relation to local water stress, pushing the industry toward greater transparency and efficiency…
EU mandates data center transparency
The European Commission has proposed rules requiring data center operators to disclose their energy and water consumption through a common rating system for facilities with capacity above 500 kilowatts.
EU wants to triple data center capacity
The bloc aims to triple its data center capacity within seven years to reduce dependence on US tech companies and strengthen digital sovereignty, but acknowledges this expansion will strain power grids and water resources.
AI boom driving massive energy surge
Data centers consumed 68 terawatt-hours of electricity in the EU in 2024. That figure is expected to nearly double to 114 terawatt-hours by 2030, accounting for over three percent of the bloc's total electricity use, largely due to artificial intelligence buildout.
What the labels will actually require
Data centers won't be forced to disclose total power use or face limits on consumption. Instead, they must reveal how their water use relates to local water stress and whether they return waste heat to the local energy grid.
Timeline and next steps
The European Commission has opened a two-month consultation period for Parliament and Council to review the rules. If approved, data centers are expected to start publishing sustainability labels next year.
What to remember
Data centers will soon have to publicly report their energy consumption and water use in relation to local water stress, pushing the industry toward greater transparency and efficiency.
