EU Introduces Sustainability Labels for Data Centres

The European Commission has proposed a new energy and water efficiency labelling framework for data centres with a capacity of 500 kW or more, as the rapid growth of artificial intelligence drives demand for digital infrastructure. With EU data center capacity expected to be more than double to 28 GW by 2030, the rules aim to improve transparency and provide comparable benchmarks on efficiency, water use relative to local stress, and practices such as waste heat reuse or grid-support services.

The EU seeks to address the sector’s growing environmental footprint with the expanding demanding. Although the framework does not impose consumption limits, it signals increasing regulatory focus on the sustainability impacts of AI. The move may pave the way for future mandatory efficiency standards and enhanced ESG expectations for digital infrastructure operators.