EU datacenter green scorecard finally escapes Brussels

The European Union has finally launched its long-awaited sustainability rating system for energy-intensive data centers, following months of debate and criticism. The new Data Centre Energy Efficiency Package includes a common EU rating scheme and electronic labels to make facilities' environmental performance more easily comparable.

The scheme will cover data centers with a power demand above 500 kW, and their electronic labels will draw on sustainability data operators already report under the EU's Energy Efficiency Directive.

The first labels are expected to appear in 2027. The package reflects a tension in EU policy: while Brussels wants to accommodate more computing capacity for AI without a corresponding surge in pressure on electricity grids and water supplies, it must balance this with transparency and rating large data centers based on their impact on the energy system. Efficient, flexible data centers that utilize additional clean energy and reuse waste heat are seen as assets for the EU's energy transition.

A separate consultation is currently seeking input on whether minimum performance standards should be introduced for new and existing data centers, with a legislative proposal planned for the second quarter of 2027. The question of what to do with data centers that don't meet the standards remains to be seen. Europe is not alone in grappling with the high utility bills associated with the AI infrastructure boom, as California Governor Gavin Newsom recently signed seven bills tightening oversight of data centers, including requirements around disclosure of water and electricity use and measures addressing who bears the cost of grid connections and other power infrastructure.