The EU proposes rules requiring data centers with a capacity of 500+ kW to disclose their energy and water efficiency using an EU-designed labelling system (Kate Abnett/Reuters)

The European Commission has introduced a proposal to require data centres in the EU to disclose their energy and water efficiency. This comes as concerns rise about the significant resource consumption of these facilities. The EU aims to triple its data centre capacity over the next seven years to support the growth of artificial intelligence and reduce reliance on US tech giants, which could strain energy grids, deplete resources, and increase emissions if not managed.

To promote energy and water efficiency, the Commission has proposed a rating system for facilities to enhance transparency. This system will not set limits on resource usage but will require operators of facilities with a capacity of 500 kilowatts to disclose their efficiency using an EU-designed labeling system. Additionally, data centres must provide information on the connection between their water use and local water stress levels, as well as whether they can contribute to the local energy system through heat reuse.

The new label may serve as a stepping stone towards mandatory minimum standards for data centre energy and water efficiency in Europe, which the EU is working on developing. Currently, data centres represent around 2.5% of EU electricity consumption, with this share expected to increase as capacity is projected to more than double to 28 gigawatts by 2030, up from 12 gigawatts last year.

EU countries and lawmakers have two months to object to the rules, after which they will become enforceable.