EU proposes energy rating for data centers

The European Commission proposed rating data centers on energy and water use with a color-coded scale from A to G, similar to appliance labels, as the EU aims to triple its data center capacity over seven years. Sites above 500 kilowatts, already required to report performance metrics, would have that data turned into public labels starting in 2027.

Commission Vice President Teresa Ribera said tripling capacity ‘cannot mean tripling the pressure’ on grids, water, and energy bills, and the ratings would credit centers for reusing waste heat or adding clean power. The push comes as U.S. data center construction has stirred backlash over rising electricity costs ahead of November midterms.

The International Energy Agency projects data centers will account for more than 3% of EU electricity demand by 2030. The commission said it is also weighing minimum performance standards on top of the labeling scheme.

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