EU Proposes New Rules Requiring Data Centers to Disclose Energy and Water Use

The European Commission has proposed new rules that would require data center operators with a rated capacity above 500 kilowatts to disclose their energy and water consumption through a unified rating system. The Commission also plans to develop EU-wide minimum performance standards for data centers, with the rating framework drawing on the same approach used for energy labels on household appliances and vehicles.

Under the current proposal, operators would not be required to report total electricity use or face direct limits on power or water consumption. Instead, they would need to explain how their water usage relates to local water stress, including whether operations are located in water-scarce areas, and whether they can contribute back to the local energy system, for example by reusing waste heat.

Citing data from the International Energy Agency, the Commission said EU data centers consumed about 68 TWh of electricity in 2024. That figure is projected to rise to 114 TWh by 2030, accounting for more than 3% of total EU electricity demand, as AI-driven computing infrastructure expands. The EU aims to roughly triple regional data center capacity over the next seven years to strengthen digital sovereignty, making efficiency and sustainability key considerations for local energy integration.

The Commission has opened a two-month consultation period. The European Parliament and the Council of the EU will review the rules and may raise objections. If the process proceeds as planned, data centers could begin publishing the new sustainability rating labels from 2027.