By Elsie Kamsiyochi
The European Union is preparing to introduce new energy-efficiency standards for data centres as policymakers grow increasingly concerned about the sector’s rapidly expanding electricity consumption. The move comes amid an unprecedented surge in demand for artificial intelligence, cloud computing, and digital infrastructure, all of which rely heavily on large-scale data centres.
According to the European Commission, data centre capacity across the EU is expected to more than double by the end of the decade, rising from approximately 12 gigawatts in 2025 to around 28 gigawatts by 2030. As a result, the industry’s share of Europe’s electricity consumption is projected to increase significantly from its current level of roughly 2.5%, placing additional strain on power grids and raising concerns about the bloc’s climate and energy goals.
To address these challenges, the Commission announced plans to develop minimum energy-performance standards for both newly built and existing data centres. A formal assessment of the sector’s energy needs is expected to be completed by 2027, laying the groundwork for future regulations aimed at improving efficiency and reducing environmental impacts.
Data centres have become the backbone of the modern digital economy, powering everything from streaming services and cloud storage to advanced AI models and business applications. However, their growing appetite for electricity has sparked concerns among energy experts and policymakers. As Europe seeks to transition toward cleaner energy systems and reduce greenhouse gas emissions, the increasing power requirements of data centres could complicate those efforts.
European officials warn that without coordinated action, rising energy demand from data centres could force countries to keep fossil-fuel power plants operating longer than planned or even invest in new conventional generation capacity. Such developments could undermine the EU’s ambitions to accelerate the transition to renewable energy sources and achieve long-term climate targets.
The Commission stressed that addressing the issue at the European level is essential before it becomes more difficult and costly to manage. Officials noted that energy consumption in the sector is expected to continue rising rapidly as AI technologies become more widespread and computational requirements increase.
The concerns extend beyond environmental issues. Higher electricity demand from data centres could contribute to increased energy costs for businesses and consumers, particularly in regions where power infrastructure is already under pressure. Industry analysts have warned that grid congestion and competition for electricity could become major challenges in the coming years if demand growth continues unchecked.
Supporting these concerns, the International Energy Agency estimates that data centres will account for roughly 20% of the increase in electricity demand across advanced economies by 2030. The rapid expansion of AI systems, which require enormous computing power, is expected to be a major driver of this trend.
In addition to efficiency standards, the European Union is also developing a sustainability-labeling system for data centres. The proposed label would provide greater transparency regarding factors such as energy efficiency, water consumption, and the use of clean energy sources. Large facilities would be required to publicly disclose information about their environmental performance, allowing customers, investors, and regulators to compare sustainability metrics more easily.
However, discussions surrounding the sustainability framework remain ongoing. One of the more complex issues under debate is how facilities powered by nuclear energy should be evaluated within the labeling system. The question reflects broader divisions within Europe regarding the role of nuclear power in achieving climate and energy objectives.
The planned regulations form part of a wider European strategy designed to strengthen the continent’s technological independence and reduce reliance on foreign technology giants. Alongside efforts to expand domestic cloud-computing and AI capabilities, the EU is also exploring ways to use artificial intelligence to accelerate permitting processes for renewable energy projects and improve the management of electricity networks.
As Europe races to compete in the global AI economy, policymakers face the challenge of balancing technological growth with environmental responsibility.
The forthcoming standards and sustainability measures signal the EU’s intention to ensure that the digital infrastructure powering the future does not come at the expense of its energy security or climate commitments.
Source: Reuters
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