The European Commission has proposed new disclosure rules for data centres with at least 500 kW of capacity, requiring operators to report how efficiently their facilities use energy and water. 

The proposal comes as Europe prepares for rapid growth in AI and digital infrastructure. 

🔹 Data centre capacity is projected to exceed 28 GW by 2030, more than double the approximately 12 GW recorded last year. 

🔹 Data centres already account for around 2.5% of EU electricity consumption, with demand expected to increase as AI infrastructure expands. 

🔹 The proposed framework would introduce an EU-wide rating and labelling system covering energy and water efficiency. 

🔹 Water-related reporting would also consider local water stress, providing greater visibility into the potential pressure data centres place on water resources. 

🔹 Operators could additionally report measures such as grid-support services and waste-heat recovery. 

Importantly, the proposal would initially focus on transparency rather than setting consumption caps. However, the data collected could support the development of mandatory minimum energy and water efficiency standards in the future. 

Why does this matter? 

The rapid expansion of AI infrastructure is increasing demand for electricity, water and other resources. Greater transparency could help policymakers, investors, data centre operators and local communities better understand and manage these impacts. 

As Europe’s digital infrastructure grows, energy efficiency, water availability and resource management are becoming increasingly important considerations for data centre planning and compliance. 

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