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EU plans energy standards for data centres amid concerns over soaring power use

Published by Global Banking & Finance Review

Posted on June 3, 2026

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· Last updated: June 3, 2026

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EU Proposes Stricter Energy Standards for Data Centres as Power Demand Soars

EU Plans for Data Centre Energy Efficiency

By Kate Abnett

BRUSSELS, June 3 (Reuters) - The European Union will develop minimum energy-efficiency standards for data centres, it said on Wednesday, as concerns grow over their rapidly rising power use.

EU data centre capacity is expected to more than double in the coming years, reaching 28 gigawatts by 2030 from 12 GW last year. That expansion will lift their share of EU electricity consumption beyond the current 2.5%.

The European Commission said it would develop minimum performance standards for both new and existing data centres, with a "needs assessment" due by 2027.

Rising Power Demand and Environmental Concerns

Impact on Clean Energy Transition

POWER HUNGRY

Data centres underpin digital services and are driving the surge in computing and AI. But their heavy energy use risks slowing Europe's clean energy transition - if fossil fuel plants are kept running longer or new ones are built to meet demand - and could push up power costs as grids come under strain.

"If not tackled at EU level now, these challenges could grow considerably and become harder to solve in the coming years, as the energy consumption of the sector is expected to increase further," the Commission said.

Projected Growth in Electricity Demand

Data centres are expected to drive 20% of growth in electricity demand in advanced economies by 2030, according to the International Energy Agency.

EU Sustainability Initiatives for Data Centres

Sustainability Label and Assessment Challenges

The EU is also working on a sustainability label for data centres, covering criteria including water use and clean energy supply, which large facilities would have to make public.

That proposal, expected on Wednesday, has been delayed. Officials told Reuters the Commission is still debating issues including how to assess data centres powered by nuclear energy. A Commission spokesperson did not immediately respond to a request for comment.

Broader EU Tech Package

The plans are part of a broader EU tech package aimed at boosting domestic cloud and AI capacity and reducing reliance on Big Tech. Other measures include using generative AI to speed up permitting for new energy projects and funding AI tools to help manage Europe's power grid.    

(Reporting by Kate Abnett. Editing by Mark Potter)

Key Takeaways

  • EU to set minimum performance standards and a sustainability label for data centres, with a needs assessment due by 2027 (energy.ec.europa.eu)
  • Data centre capacity in the EU may more than double to nearly 28 GW by 2030, lifting their electricity share above 2.5% (reported by Reuters) enriched by IEA data showing global consumption may double to ~945 TWh by 2030, driven by AI (iea.org)
  • IEA projects data centres will account for over 20% of electricity demand growth in advanced economies by 2030—raising concerns over grid strain, fossil fuel use, and rising power costs (iea.org)

References

Frequently Asked Questions

Why is the EU introducing energy standards for data centres?
The EU is introducing energy standards due to concerns over the rapidly rising power use of data centres, which could impact electricity costs and hinder clean energy goals.
How much is EU data centre capacity expected to grow by 2030?
EU data centre capacity is expected to more than double, reaching 28 gigawatts by 2030 compared to 12 GW last year.
What new regulations will the European Commission propose for data centres?
The Commission plans to introduce minimum energy-efficiency and sustainability standards for both new and existing data centres, with a needs assessment by 2027.
What impact do data centres have on electricity demand in Europe?
Data centres are expected to drive 20% of the growth in electricity demand in advanced economies by 2030.
What other tech measures is the EU considering alongside data centre standards?
The EU is also considering generative AI for permitting energy projects and funding AI tools to manage power grids.

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