Brussels – The European Commission announced on Monday a draft regulation that would compel large data‑centre operators to publish detailed information about how efficiently they use energy and water. The move comes as the EU seeks to triple its data‑centre capacity over the next seven years to support rapid artificial‑intelligence development while reducing reliance on U.S. technology firms.

Why the new label matters

Data centres now account for roughly 2.5% of the European Union’s electricity consumption. With capacity expected to more than double by 2030 – rising from 12 GW last year to an estimated 28 GW – the Commission warns that unchecked growth could strain power grids, deplete local water supplies and increase carbon emissions.

To address those risks, the proposal introduces an EU‑designed labeling system. Operators of facilities with a capacity of 500 kilowatts or more would have to disclose two key metrics:

• Energy‑efficiency performance, measured against a standardized rating.
• Water‑efficiency performance, including the relationship between water use and local water‑stress levels.

In addition, the label would ask whether a centre can provide services to the local energy system, such as re‑using waste heat.

What the label does not do

The scheme stops short of imposing hard caps on energy or water consumption, and it does not require operators to reveal total power draw. Instead, the focus is on transparency, giving customers, investors and regulators clearer insight into a facility’s environmental footprint.

Commission officials say the labeling could serve as a stepping stone toward mandatory minimum standards for energy and water efficiency, which are already under development.

Timeline and next steps

EU member states and the European Parliament have two months to submit objections to the draft. If no objections are lodged, the rules will automatically enter into force, setting the stage for a continent‑wide push toward greener, more accountable data‑centre operations.

Stakeholders from the tech industry, environmental groups and national regulators are expected to weigh in during the comment period, shaping the final shape of the policy before it becomes binding.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.