The European Commission on Monday proposed rules requiring European data centers
to disclose energy and water-use efficiency. The EU aims to triple data center
capacity over the next seven years to support rapid AI growth and reduce
reliance on large U.S. tech firms. Unchecked consumption by large facilities
could strain European grids, increase water use and push up CO2 emissions. The
proposal would set an EU-designed labeling and rating system to raise
transparency; it would not cap energy or water use or require disclosure of
total electricity consumption, but would require operators of data centers with
capacity ≥500 kW to report efficiency metrics under the label. The label could
serve as a precursor to mandatory minimum efficiency standards that the EU is
currently drafting.
