Commission enhances energy efficiency and sustainability of data centres in the EU

This article is brought to you in association with the European Commission.

The European Commission proposed today a common rating scheme for data centres aimed at increasing transparency on their energy use and supporting their sustainable integration into Europe’s energy system.

Data centres are essential to Europe’s digital future. Increasing computing capacity in Europe is important for strengthening Europe’s technological independence and digital sovereignty. This is why the EU wants to triple its data centre capacity over the next five to seven years. Still, this growth brings challenges which need to be addressed. In addition to using more energy, an increase of data centres could put extra pressure on electricity grids and the use of natural resources, such as water, and contribute to increase carbon emissions. To limit these impacts, it is essential that data centres are highly energy- and water-efficient and sustainably integrated in the energy system.

With the common rating scheme proposed today, the Commission will help ensure that there is transparent information about the actual use of resources (energy, water) by data centres. The rating scheme will cover individual data centres with a capacity above 500 kW. It will also cover data centres’ contribution to the grid, such as the reuse of waste heat, the addition of clean energy generation capacities as well as flexibility. A striking example: reusing around half of all waste heat from European data centres is the equivalent of the total heating demand of 4 million households in Europe. Sustainable, flexible and well-designed data centres that can adjust their electricity use to the grids conditions, can help lower the overall cost of the electricity system, improve grid stability, and integrate more renewable energy.

To create lead markets for sustainable digital assets and services across Europe and further support the integration of sustainable data centres in the energy system, the Commission has launched a call for evidence and public consultation on minimum performance standards for data centres operating in Europe.

Next steps

The Delegated Regulation establishing the common rating scheme is now subject to 2-month scrutiny period by the European Parliament and the Council before entering into force. The co-legislators have the right to object to the delegated act adopted by the Commission (e.g. question the delegated power or the process), yet they cannot propose changes to the text.

The first sustainability labels for individual data centres are expected to be displayed in 2027.  A first review of the scheme is foreseen by end-2028 to assess its effectiveness and possible improvements, if necessary. Further work is also ongoing for the sustainable integration of data centres in the energy system. The Commission is following up to the Declaration of intent signed in June 2026 working with data centres operators, grid operators, energy providers and public authorities towards a tripartite agreement on data centres in the second half of the year.

The consultation on the minimum energy performance standards for data centres closes on 14 December 2026. The Commission will continue to consult with Member States, industry and civil society to ensure a robust and inclusive policy framework.

Background

Data centres are one of the world’s fastest growing sectors, consuming around 68 TWh of the EU’s electricity in 2024 alone. Driven by artificial intelligence, this is expected to virtually double to 114 TWh by 2030 – reaching more than 3% of overall electricity demand in the EU, according to the International Energy Agency.

The EU’s digital strategy underlines the need for highly energy-efficient and sustainable data centres and calls for more transparency about their environmental footprint. The Commission is therefore acting to improve transparency, promote more efficient facilities and encourage better use of energy and other resources, building on the Energy Efficiency Directive and the 2024 reporting scheme for data centres.

This package delivers on the Strategic Roadmap on digitalisation and AI in the energy sector and the recently adopted Electrification Action Plan.

For more information

Report on the energy efficiency of data centres in the EU – Energy

Commission Delegated Regulation establishing a common Union rating scheme for data centres and annexes – Energy

Energy Efficiency of Data Centres Report

Questions and answers on the data centre energy efficiency package

Energy performance of data centres – Energy – European Commission

Energy Efficiency Directive

Reporting scheme for data centres

Minimum performance standards for EU data centres

Digitalisation of the energy systems

Key Questions on Energy and AI – Analysis – IEA