The European Commission is introducing a new way to measure the environmental performance of Europe’s data centres as demand for computing infrastructure accelerates.
A proposed common rating scheme will improve visibility into data centre sustainability by increasing transparency on how much energy and water individual facilities use, while also assessing their contribution to the wider electricity system.
The initiative will apply to data centres with a capacity above 500kW and is designed to support the expansion of Europe’s digital infrastructure without overlooking the pressure that larger facilities can place on energy networks and natural resources.
The Commission expects the first sustainability labels to appear on individual data centres in 2027. The scheme will subsequently be reviewed by the end of 2028 to determine how effectively it is working and whether changes are needed.
Dan Jørgensen, Commissioner for Energy and Housing, emphasised the significance of sustainable data centres: “To ensure that the digital transformation truly works for our society, we must address the growing energy demand of data centres.
“Understanding their energy and resource consumption is the essential first step towards integrating them sustainably into our energy system. Digital sovereignty must go hand in hand with energy responsibility.”
Europe’s data centre footprint is growing
The timing of the proposal reflects the rapidly increasing demand for computing capacity across Europe.
Data centres consumed around 68TWh of electricity in the EU during 2024. The International Energy Agency (IEA) expects that figure to reach 114TWh by 2030, meaning data centres could account for more than 3% of the bloc’s total electricity demand.
AI is a major factor behind the increase.
At the same time, the EU wants to expand its data centre capacity substantially, with the Commission targeting a threefold increase over the next five to seven years.
Increasing computing capacity is seen as important to Europe’s technological independence and digital sovereignty.
That growth could, however, increase demand for electricity and water, add pressure to electricity grids and contribute to higher carbon emissions.
Measuring more than electricity use
The proposed approach to data centre sustainability goes beyond simply recording how much electricity a facility consumes.
The new rating system is intended to provide information on both energy and water use, alongside measures showing how a data centre interacts with the electricity system.
This could include the amount of waste heat recovered, whether additional clean energy is generated, and how much flexibility a facility can offer the grid.
That flexibility could become particularly useful as electricity systems incorporate more renewable energy.
Data centres that can change their electricity consumption in response to grid conditions could help improve grid stability and reduce the overall cost of operating the electricity system.
Waste heat also presents a potentially significant resource. The Commission estimates that using around half of the waste heat generated by European data centres could provide heat equivalent to the total heating demand of four million households.
Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, added: “Tripling our data centre capacity cannot mean tripling the pressure on our grids, our water and our energy bills.
“That starts with transparency, rating large data centres depending on their impact on our energy system. Efficient, flexible, powered by additional clean energy and reusing waste heat, this is how data centres become an asset for the EU’s energy transition.”
Towards more sustainable data centres
The rating scheme is being developed alongside work on minimum performance standards for data centres.
The Commission has launched a call for evidence and a public consultation as it considers how such standards could support the development of sustainable data centres and create markets for more sustainable digital infrastructure and services.
The consultation will remain open until 14 December 2026, with the Commission seeking input from Member States, industry, and civil society.
The delegated regulation establishing the rating scheme will now face a two-month scrutiny period in the European Parliament and Council.
The institutions can object to the delegated act, including on the basis of the delegated power or procedure, but cannot amend its text.
Data centres and Europe’s energy system
The Commission’s work extends beyond the rating scheme itself.
Following a declaration of intent signed in June 2026, it is working with data centre operators, grid operators, energy providers and public authorities towards a tripartite agreement on data centres.
The broader objective is to ensure that Europe’s expanding digital infrastructure can be accommodated within its energy system while making resource use more transparent.
For the rapidly growing data centre sector, the proposed ratings will therefore provide a way of looking beyond computing capacity alone, highlighting how individual facilities consume resources and how they interact with the energy networks on which they depend.
