EU proposes rating scheme for data centers’ energy and water use

The European Commission on Monday proposed a common rating scheme for data centers in an effort to increase transparency over their energy and water use and support their integration into Europe's energy system.

The ratings would apply to individual data centers with a capacity above 500 kilowatts, the Commission said in a statement.

They would also assess whether facilities reuse the heat produced by their equipment, add clean energy supplies and adjust their electricity use to ease pressure on power grids.

The Commission said data centers that use resources efficiently and can shift their power consumption could help lower electricity system costs, keep grids stable and make it easier to integrate renewable energy.

The proposal comes as the EU seeks to triple its data center capacity over the next five to seven years to meet growing computing needs and reduce reliance on technology from outside the bloc.

But that expansion could also strain electricity supplies and water resources and increase carbon emissions, the Commission warned.

Reusing around half the heat generated by European data centers could meet the heating needs of four million households, it said.

The Commission also opened a public consultation on proposed minimum standards for data centers operating in Europe, which closes on Dec. 14, 2026.

The European Parliament and the Council now have two months to scrutinize the proposed rating system. They can object to it but cannot amend the text.

The first labels showing individual data centers’ sustainability ratings are expected in 2027. The Commission plans to review the system by the end of 2028.

Data centers used around 68 terawatt-hours of electricity in the EU in 2024, according to figures cited by the Commission.

Driven by the growth of artificial intelligence, consumption is expected to rise to 114 terawatt-hours by 2030, accounting for more than 3% of the bloc’s electricity demand.

The Commission said the new measures build on existing EU rules on energy efficiency and data centre reporting, and form part of wider efforts to integrate digital infrastructure with Europe's energy system.