EU Proposes Energy Standards for Data Centers Over Power Usage Concerns

European Union Announces Plans for Data Centre Energy Efficiency Standards

The European Union has announced plans to develop minimum energy-efficiency standards for data centres, as concerns over their rapidly increasing power use grow. EU data centre capacity is expected to more than double in the coming years, reaching 28 gigawatts by 2030 from 12 GW last year.

Expansion of Data Centres Could Exceed Current Electricity Consumption

The expansion will lift the share of EU electricity consumption beyond the current 2.5%. The European Commission said it would develop minimum performance standards for both new and existing data centres, with a “needs assessment” due by 2027.

Energy Use Risks Slowing Europe’s Clean Energy Transition

Data centres underpin digital services and are driving the surge in computing and AI. However, their heavy energy use risks slowing Europe’s clean energy transition if fossil fuel plants are kept running longer or new ones are built to meet demand, potentially pushing up power costs as grids come under strain.

EU Working on Sustainability Label for Data Centres

The EU is also working on a sustainability label for data centres, covering criteria including water use and clean energy supply. Large facilities would have to make these public. This proposal has been delayed due to ongoing debates over how to assess data centres powered by nuclear energy.

Broader EU Tech Package Aims at Boosting Domestic Cloud Capacity

The plans are part of a broader EU tech package aimed at boosting domestic cloud and AI capacity and reducing reliance on Big Tech. Other measures include using generative AI to speed up permitting for new energy projects and funding AI tools to help manage Europe’s power grid.