European Commission Proposes Energy Ratings for Data Centres

The European Commission proposed rules on September 21, 2026, requiring data centres with a capacity of 500 kW or more to disclose their energy and water efficiency. The initiative introduces an EU-designed labelling and rating scheme to track Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE), renewable energy use, and waste heat recovery. This transparency measure aims to incentivize sustainable construction as the EU seeks to triple its data centre capacity over the next five to seven years to support artificial intelligence and reduce reliance on U.S. technology.

Commission officials warned that uncontrolled growth could strain electricity grids and deplete water resources. Data centres currently account for 2.5% of EU electricity consumption, with capacity expected to rise from 12 GW last year to 28 GW by 2030. While the current proposal does not impose hard limits, it serves as a precursor to mandatory minimum performance standards, for which the Commission has launched a public consultation closing in December.

Parallel to EU efforts, the Government of Spain launched a public consultation in August 2026 for a national regulatory framework. Prime Minister Pedro Sanchez argued that any increase in electricity demand from data centres must be supported by new clean-energy projects to avoid the energy crises seen in countries like Ireland.

EU lawmakers and member states have two months to object to the Commission's proposal. The first sustainability labels are expected to appear between 2026 and 2027, with a formal effectiveness review planned for the end of 2028.