EU proposes mandatory sustainability labels for large data centres

The European Commission has proposed a mandatory sustainability labelling scheme for data centres with over 500 kilowatts of installed capacity, aiming to increase transparency on their energy and water use. The proposal, unveiled on September 21, 2026, is part of the EU's broader strategy to triple its data centre capacity within five to seven years to support artificial intelligence development and reduce reliance on foreign technology. Under the plan, data centres will receive an electronic label grading them from A to G for energy and water efficiency, similar to the system used for home appliances. The labels, which are expected to be applied from 2027, will also display a pie chart showing the share of low-emission power, including nuclear, used by the facility. The scheme is designed to make facilities comparable and inform better policymaking and procurement. The initiative comes as the EU grapples with the growing resource demands of the digital sector. In 2024, European data centres consumed approximately 68 terawatt-hours of electricity, a figure projected to rise to 114 TWh by 2030, accounting for over 3% of the bloc's total electricity use.