Key facts
- EU data centers will be rated A-to-G on energy efficiency, water usage, and clean power uptake.
- The new sustainability label will be mandatory for large data centers from August 2027.
- The EU plans to introduce minimum performance standards for data centers in spring 2027.
- Data centers currently account for 2.5% of the EU's electricity use, a share expected to double.
- The EU's delegated regulation can take effect without EU government or Parliament input unless objected to within two months.
The European Union has launched a new environmental rating scheme for data centers, aiming to pressure Big Tech companies into adopting more sustainable practices. Unveiled on September 21, 2026, the A-to-G label will grade data centers on energy efficiency, water usage, and clean power uptake, similar to existing EU appliance rankings. These rules will become mandatory for large data centers from August 2027. Energy Commissioner Dan Jørgensen stated the initiative is the first step in aligning the tech sector with the continent's climate efforts and ensuring AI development does not compromise energy system sustainability or decarbonization goals. The EU executive plans to introduce mandatory minimum performance standards in spring 2027, which are expected to further tighten requirements for new and retrofitted data centers. While Australia and Singapore have similar schemes, the EU's is described as the most comprehensive globally, requiring transparency on energy and water use, heat reuse, and electricity cleanliness. Data centers currently consume 2.5% of the EU's electricity, a figure projected to double. The new delegated regulation can take effect without parliamentary or governmental approval unless objected to within two months. Despite lobbying from the European Data Center Association, which warned of investment impacts, Jørgensen urged companies to view the regulations as an opportunity to gain public trust, especially as backlash against AI infrastructure's energy and water consumption grows in both Europe and the US. He indicated that while national decisions may mandate renewable energy provision, the EU's focus is on setting overall sustainability demands.