EU to Require Data Centers to Reveal Energy and Water Use

The European Commission has proposed new rules requiring data centers across the EU to disclose their energy and water consumption through a unified sustainability rating system. The measure targets facilities above 500 kW and comes as the bloc aims to triple its data center capacity within seven years to strengthen digital sovereignty and reduce reliance on US tech companies. Officials warn that rapid expansion could strain electricity grids, increase water usage, and raise carbon emissions, especially as AI‑related compute demand accelerates. Data centers consumed 68 TWh of electricity in 2024, a figure expected to rise to 114 TWh by 2030, representing more than three percent of the EU’s total power use. Under the proposal, operators must report how their water usage relates to local water stress and whether they contribute energy back to the grid, such as through waste‑heat recovery. The system does not yet impose limits on total consumption but will inform future minimum performance standards. The European Parliament and Council now have two months to review the rules, with sustainability labels expected to appear next year if approved.

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