The European Commission has proposed a mandatory rating system for EU data centers to assess their energy and water usage, effective from 2027. The scheme targets facilities consuming more than 500 kilowatts, covering metrics such as electricity consumption, heat recovery, clean energy generation, and grid flexibility during peak demand periods.
The proposal, published on September 21, 2026, seeks to address concerns that tripling data center capacity—expected within five to seven years—could strain energy grids and water supplies. In 2024, European data centers consumed approximately 68 terawatt-hours (TWh) of electricity, with forecasts suggesting usage could rise to 114 TWh by 2030, driven largely by artificial intelligence workloads. By that year, data centers are projected to account for more than 3% of the EU’s total electricity consumption.
The Commission’s executive vice-president for the clean, just and competitive transition, Teresa Ribera, emphasized that tripling capacity does not need to mean proportional increases in grid pressure or energy bills. Dan Jørgensen, the Energy Commissioner, stressed that digital sovereignty must align with energy responsibility. The proposal is structured as a delegated regulation, subject to review by the European Parliament and Council within two months. Operators cannot alter the text but may object to the entire regulation.
In parallel, the Commission has launched a consultation on minimum performance standards, with a deadline of December 14, 2026, to establish a baseline for energy-efficient data center operations. Additionally, work is underway to finalize a tripartite agreement among operators, grid operators, and energy suppliers, following a June declaration of intent.
If implemented, the scheme could unlock significant waste heat recovery potential. For instance, reusing half of the approximately 1.2 petajoules of waste heat generated annually by EU data centers could meet heating needs for four million households.
The proposal reflects broader EU efforts to decarbonize critical infrastructure while ensuring sustainable growth in digital services. The International Energy Agency has previously warned that unchecked expansion of data centers could exacerbate energy and water scarcity in the region.
