EU Draws Up Energy Rules for Data Centers

The European Union is developing minimum energy efficiency standards for data centers as concerns grow over their soaring electricity consumption.

Data center capacity in the EU is set to more than double in the next few years, from 12 gigawatts last year to 28 gigawatts by 2030, pushing their share of EU electricity consumption beyond the current 2.5%.

The European Commission plans to set minimum performance standards for new and existing installations, with a needs assessment due by 2027.

Data centers are central to digital services and the growth of artificial intelligence, but their high energy consumption can slow the green transition, prolong reliance on fossil fuels and drive up electricity prices. According to the International Energy Agency (IEA), they are set to account for a fifth of growth in electricity demand in developed economies by 2030.

The EU is also developing a sustainability label for data centers covering water consumption and clean energy supply. The plans form part of a broader technology package aimed at boosting Europe's cloud and AI capacity and reducing dependence on large technology companies.

(reuters, bak)