EU Plans Energy Efficiency Standards for Data Centres

The European Union has announced plans to develop minimum energy-efficiency standards for data centres as concerns grow over the sector’s rapidly increasing electricity consumption. The move forms part of a broader strategy to support digital growth while safeguarding energy security and climate objectives. According to the European Commission, data centre capacity across the EU is expected to more than double from 12 gigawatts in 2025 to 28 gigawatts by 2030. This expansion is projected to increase the sector’s share of electricity consumption beyond its current level of approximately 2.5%, driven largely by growing demand for cloud computing and artificial intelligence services. The Commission said it will develop minimum performance standards for both new and existing data centres, with a needs assessment scheduled for completion by 2027. The initiative will complement existing reporting requirements and forms part of a wider Data Centre Energy Efficiency Package adopted alongside the EU’s digitalisation and AI strategy. In addition to efficiency standards, the EU is working on a sustainability rating system for data centres that would increase transparency around factors such as energy use, water consumption and clean energy sourcing. Officials are continuing discussions on the framework, including how facilities powered by nuclear energy should be assessed. The measures come amid growing concern that rapidly rising power demand from data centres could place additional pressure on electricity grids and complicate efforts to accelerate the clean energy transition. The International Energy Agency estimates that data centres will account for around 20% of electricity demand growth in advanced economies by 2030.