EU sets new energy-efficiency standards for data centres amid rising power use

The EU has planned to set new rules for data centers to curb power consumption amid concerns over rapidly increasing energy use from AI workloads and cloud infrastructure.

The European Commission said it would develop minimum performance standards for both new and existing data centers, with a "needs assessment" due by 2027.

The European Union will develop minimum energy-efficiency standards for data centers, it said on Wednesday, ‌as concerns grow over their rapidly rising power use.

EU data center capacity is expected to more than double in the coming years, reaching 28 gigawatts by 2030 from 12 GW last year. That expansion will lift their share of EU electricity consumption beyond the current 2.5%.

Data centers underpin digital services and are driving the surge in computing and AI. But 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 and could push up power costs as grids come under strain.

"If not tackled at EU level now, these challenges could grow considerably and become harder to ‌solve in the coming years, as the energy consumption of the sector is expected to increase further," the Commission said.

The EU is also working on a sustainability label for data centers, covering criteria including water use and clean energy supply, which large facilities would have to make public.

As reported by Reuters, the proposal expected on Wednesday has been delayed as the commission is still debating issues, including how to assess data centres powered by nuclear energy.

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.

According to the International Energy Agency, data centers are expected to drive 20% of growth in electricity demand in advanced economies by 2030.

The proposal seeks to improve energy efficiency in data centres as Europe faces surging power consumption from AI and digital services.