EU proposes sustainability labels for data centres

The European Commission is proposing a common rating scheme for data centres to increase transparency on their energy use and supporting their sustainable integration into Europe's energy system.

The European Union (EU) plans to triple its data centre capacity over the next five to seven years.

"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," European Commission said.

"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 increased 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."

The commission said a common rating scheme would help give transparent information about the actual use of resources such as energy and 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," European Commission said.

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, the commission added.

"Tripling our data centre capacity cannot mean tripling the pressure on our grids, our water and our energy bills," European Commission executive vice-president for a clean, just and competitive transition Teresa Ribera said.

"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."

The first sustainability labels for individual data centres are expected to be displayed in 2027.