EU sets energy standards for data centres amid soaring power demand

The European Union is developing energy efficiency benchmarks for data centres amid soaring power demand projections that see capacity doubling by 2030.

The EU’s revised Energy Efficiency Directive and minimum energy efficiency standards for data centres are in line with the bloc’s 2030 target of reducing greenhouse gas emissions by at least 55% compared to 1990, it said in a statement. The European Commission said it would develop minimum ⁠performance standards for both new and existing data centres, with a “needs assessment” ​due by 2027, Reuters reported.

The EU is ​also working on ⁠a sustainability label for data centres, covering criteria including water use and clean energy supply, which large facilities would have to make public, it said. Officials told Reuters the Commission ​is ⁠still debating issues including how to assess data centres powered by nuclear energy.

The new EU rules imply strengthening incentives for data centres to improve energy efficiency and sustainability, and improving transparency and comparability by building on the reporting and rating framework under the Energy Efficiency Directive so that performance standards can be defined and enforced consistently across EU countries, the Commission said.

“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 move comes amid projections that EU data centre capacity will more than double to reach 28 gigawatts by 2030 from 12 GW ​in 2025. That expansion will lift their share of EU electricity consumption ​beyond the current 2.5%, according to Reuters.

“Energy efficiency is a central pillar of the EU’s energy and climate framework, as well as being a key policy for delivering energy savings, improving affordability, and strengthening the competitiveness and resilience of the European economy on its path to climate neutrality,” the Commission said in a statement.

Data centres are expected to drive 20% of the growth in electricity demand in advanced economies by 2030, according to the International Energy ​Agency.

The Commission said it is also developing a post-2030 energy efficiency framework to help shape EU energy efficiency rules for the decade ahead, which is scheduled for publication later this year.

According to Reuters, 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.