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(Bloomberg) — The European Union wants to propose a sustainability rating system for data centers to encourage greater energy and resource efficiency as the sector’s rapid expansion strains power grids and the environment.
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The European Commission, the EU’s executive arm, plans to unveil a regulation later this month requiring electronic labels for new and existing data centers to encourage new designs and efficiency improvements. The proposal aims to cut energy and water consumption, promote the use of clean energy and encourage the reuse of waste heat in nearby buildings or district heating networks, according to a draft seen by Bloomberg News.
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Europe’s push to expand its artificial intelligence industry and catch up with the US and China is expected to increase data centers’ energy footprint. Power demand from the sector is projected to more than double from 2023 levels, exceeding 3% of the EU’s total electricity consumption by the end of the decade, according to the commission.
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The commission declined to comment, in line with its policy of not commenting on draft documents.
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Data centers powering AI systems use energy-intensive semiconductors and need to run at full capacity for longer periods. A May 2026 report by German think tank interface estimated that each server in an AI data center draws three to 10 times more power than one in a non-specialized center.
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“In operational terms, a 100–300 megawatt AI cluster behaves less like the traditional IT infrastructure and more like an electro-intensive industrial plant connected to constrained grids,” the report said.
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The commission last month unveiled a strategy to prepare Europe’s power grids for AI’s extra energy demand, including by relying on AI and digital solutions to ramp up efficiency.
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