The European Commission has proposed a common rating scheme for data centres to improve transparency regarding their resource consumption and support their integration into the European energy network.
The policy framework comes as the European Union aims to triple its data centre capacity over the next five to seven years to enhance technological independence and digital sovereignty. However, officials noted that rapid expansion risks placing significant strain on electricity grids, increasing water usage, and driving up carbon emissions.
The proposed rating system will apply to individual facilities with a capacity exceeding 500 kilowatts. Beyond tracking direct energy and water usage, the scheme will evaluate grid contributions, including waste heat reuse, clean energy generation, and operational flexibility. Commission calculations indicate that recovering approximately half of all waste heat generated by European data centres could match the heating demand of four million households. Sustainable, adaptable facilities are expected to reduce system costs, enhance grid stability, and enable greater integration of renewable power.
Alongside the rating proposal, the Commission launched a public consultation and call for evidence regarding minimum performance standards for data centres operating within the bloc, which remains open until 14 December 2026.
The Delegated Regulation establishing the scheme is currently subject to a two-month scrutiny period by the European Parliament and the Council. While co-legislators hold the authority to object to the delegated act, they cannot amend its text.
Initial sustainability labels for individual facilities are anticipated in 2027, with a formal review of the framework scheduled for the end of 2028. Additionally, the Commission is pursuing a tripartite agreement involving data centre operators, grid managers, energy providers, and public authorities during the second half of 2026, building upon a Declaration of Intent signed in June.
According to International Energy Agency data, EU data centres consumed approximately 68 terawatt-hours of electricity in 2024. Surging demand driven by artificial intelligence applications is projected to nearly double consumption to 114 terawatt-hours by 2030, accounting for more than three per cent of total electricity demand across the European Union.
