The European Commission proposed on Monday a common rating scheme for data centres, to make their energy and water consumption transparent and to integrate them into Europe’s electricity system.

The label, set out in a delegated regulation, will cover data centres with a capacity above 500 kW and also their contribution to the grid, such as the reuse of waste heat and consumption flexibility; according to the Commission, reusing around half of all waste heat from European data centres is equivalent to the heating demand of 4 million households. Brussels wants to triple the European Union’s data centre capacity within five to seven years to sustain artificial intelligence development and cut reliance on US Big Tech, and the International Energy Agency (IEA) estimates that these facilities consumed around 68 TWh of European electricity in 2024, a volume expected to virtually double to 114 TWh by 2030, more than 3% of the bloc’s electricity demand. The delegated regulation now faces a two-month scrutiny period by the European Parliament and the Council before entering into force; the first sustainability labels are expected in 2027, and the consultation on minimum energy performance standards closes on 14 December 2026. Reuters notes that the scheme imposes no consumption limits and does not require operators to disclose total power use.