EU datacenter green scorecard finally escapes Brussels

Brussels has finally unveiled its datacenter sustainability rating scheme, potentially including minimum performance standards in the future. The European Commission unveiled the Data Centre Energy Efficiency Package, which includes a common EU rating scheme and electronic labels to help compare facilities' environmental performance.

The scheme will cover datacenters with a power demand above 500 kW, with labels drawing on sustainability data operators report under the EU's Energy Efficiency Directive. The first labels are expected in 2027. The scheme comes after years of attempts in Brussels, with the original A-to-G rating system delayed due to industry criticism.

Reports also emerged that parts of the proposal were watered down following lobbying from datacenter operators and tech giants. The tension in EU policy lies in wanting more computing capacity for AI without increasing pressure on electricity grids and water supplies. Teresa Ribera, the Commission's Executive Vice-President for Clean, Just and Competitive Transition, emphasized the need for transparency and rating datacenters based on their impact on the energy system.

The labels and potential minimum performance standards may only be the start, with a consultation on minimum standards running until December 14, 2026, with a legislative proposal planned for the second quarter of 2027. Europe is not alone in facing the challenges of the AI infrastructure boom, with California Governor Gavin Newsom signing seven bills this week to tighten oversight of datacenters, including disclosure of water and electricity use and measures to address grid connections costs.