EU to Set Minimum Energy-Efficiency Standards for Data Centers Amid Rising Power Use
The EU will establish minimum energy-efficiency standards for data centers, prompted by their projected growth to 28 GW by 2030 from 12 GW last year. This aims to mitigate rising power consumption, which risks hindering Europe's clean energy transition and increasing costs. A needs assessment is due by 2027, as data centers are expected to drive 20% of electricity demand growth in advanced economies by 2030.
The European Union announced on Wednesday it will develop minimum energy-efficiency standards for data centers due to concerns over their rapidly increasing power consumption. EU data center capacity is projected to more than double from 12 gigawatts (GW) last year to 28 GW by 2030, raising their share of EU electricity consumption beyond the current 2.5 percent.
The European Commission will establish minimum performance standards for both new and existing data centers, with a needs assessment expected by 2027. This initiative aims to prevent data centers' heavy energy use from hindering Europe’s clean energy transition and escalating power costs. In Ireland, data centers consumed 22 percent of the state’s energy in 2024, surpassing all urban households.
The Commission emphasized that addressing these challenges at the EU level now is crucial, as the sector's energy consumption is expected to grow further. The International Energy Agency predicts data centers will account for 20 percent of electricity demand growth in advanced economies by 2030. The EU is also developing a sustainability label for data centers, covering water use and clean energy supply, which large facilities would need to disclose. A related proposal for this label was delayed due to ongoing debates, including how to assess nuclear-powered data centers. These plans are part of a wider EU tech package designed to boost domestic cloud and AI capacity and lessen dependence on Big Tech.