EU launches energy rating scheme for data centres

The European Commission has proposed a common EU rating scheme for data centers designed to improve transparency around energy and water use and encourage more sustainable integration with Europe’s power system. The move comes as the EU plans to triple its data center capacity over the next five to seven years to support AI, cloud computing and greater digital sovereignty. For eeNews Europe readers, the proposal is significant because it could directly affect how new data center infrastructure is designed, operated and connected to electricity networks. It also points to tighter efficiency requirements for the rapidly growing AI and high-performance computing sector. Rating energy, water and grid impact The proposed scheme will apply to individual data centers with an installed IT power demand above 500 kW. Alongside energy and water consumption, the ratings will consider how facilities interact with the electricity grid, including their ability to provide flexibility, add clean generation capacity and reuse waste heat. According to the Commission, recovering around half of the waste heat produced by European data centers could provide heat equivalent to the total demand of around four million households. The Commission argues that flexible data centers able to adjust electricity consumption according to grid conditions could help improve grid stability, reduce overall electricity-system costs and support higher levels of renewable energy. “Tripling our data center capacity cannot mean tripling the pressure on our grids, our water and our energy bills. That starts with transparency, rating large data centers depending on their impact on our energy system. Efficient, flexible, powered by additional clean energy and reusing waste heat, this is how data centers become an asset for EU’s energy transition,” said Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition. Minimum standards under consultation Alongside the rating system, the Commission has opened a call for evidence and public consultation on minimum performance standards for data centers operating in Europe. The consultation is scheduled to close on December 14, 2026. The delegated regulation establishing the rating scheme will now go through a two-month scrutiny period by the European Parliament and Council. The first sustainability labels for individual data centers are expected to appear in 2027, with a review planned by the end of 2028. AI pushes electricity demand higher Data centers consumed around 68 TWh of electricity in the EU in 2024. Driven largely by AI workloads, that figure is expected to rise to 114 TWh by 2030, representing more than 3% of total EU electricity demand, according to the International Energy Agency. The initiative builds on the EU Energy Efficiency Directive and the data center reporting scheme introduced in 2024, while also supporting the Commission’s wider plans for digitalisation, AI and electrification. The post EU Commission launches data centre energy rating scheme appeared first on eeNews Europe.