The European Commission introduces labels for large data centers in the EU, with information on energy and water consumption and the impact on the grid

The European Commission has adopted a delegated regulation under which large data centres in the European Union will be assessed and labelled according to energy efficiency, water consumption and their contribution to the energy system. The first labels are expected in 2027, following the review of the regulation by the European Parliament and the Council.

The scheme applies mainly to facilities with a capacity of at least 500 kW. The label will include two classifications, from A to G, for energy efficiency and water use, as well as information on energy sources, consumption flexibility and readiness to reuse waste heat. Operators will report the data, while the labels will be generated automatically and published in a European database.

The Commission estimates that data centres consumed 68 TWh of electricity in 2024, and that consumption could reach 114 TWh by 2030, driven by the expansion of infrastructure for artificial intelligence. The EU aims to triple data-centre capacity over the next five to seven years, which could increase pressure on power grids and water resources.

The regulation aims to enable comparisons between similar facilities and encourage investment in efficiency, without imposing mandatory minimum standards for now. To establish such standards, the Commission is holding a consultation until 14 December 2026, while a legislative proposal is planned for the second quarter of 2027.