EU pressures Big Tech to go green with new data center sustainability label
The scheme, which forces data centers to disclose energy and water use, would be the most comprehensive of its kind in the world.
The European Union has introduced a new environmental rating scheme for data centers that fuel artificial intelligence, moving to pressure leading tech companies to adopt greener practices, according to EU energy chief Dan Jørgensen. The rules, set to take effect in August 2027, will require large data centers to display a label rating their energy efficiency, water usage, and clean power uptake on a scale from A to G. Smaller data centers will have optional participation, although mandatory performance standards are expected later.
The EU aims to be the most comprehensive global label, requiring transparency on local and global environmental impacts, including water consumption, electricity cleanliness, heat reuse, and more. These initiatives are part of the EU's strategy to maintain its competitiveness in the AI race while pursuing climate neutrality by 2050.
The label will be generated automatically from existing data, but compliance with current energy efficiency rules is low at 36%. While some data center operators oppose the plans, Jørgensen believes the EU's efforts could boost public trust and business reputations. The regulation, a delegated regulation, can take effect without EU governments or the European Parliament's input, and EU institutions have two months to object.
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