EU proposes energy rating for data centers

Data centers have yet to become a political flashpoint in the 27-nation EU, as the bloc lags well behind the United States in AI development.(AFP) — Data centers in Europe will be rated on energy and water consumption under an EU proposal put forward Monday to preempt possible public discontent as the bloc pushes to boost its computing capacity.The European Union aims to triple its data center capacity over the next seven years as it plays catch-up with the United States and China on artificial intelligence.“Tripling our data center capacity cannot mean tripling the pressure on our grids, our water and our energy bills,” said European Commission Vice President for Clean Transition Teresa Ribera.Data center construction has sparked backlash across the United States, with local residents often complaining that the power-hungry engines of AI are driving up electricity costs — a hot political issue ahead of November’s midterm elections.The EU said its program would provide the public with information about the water and energy consumption of sites with capacity above 500 kilowatts. Those sites are already required to report key performance metrics to the EU.Similar to the system already used for home appliances, the rating will rank data centers on a color-coded scale, with A, or green, representing the most efficient and G, or red, representing the least efficient, according to a commission presentation.To encourage good practices, the score will take into account data centers’ contributions to the grid, such as reusing waste heat and adding clean energy generation capacity, the commission said.“Efficient, flexible, powered by additional clean energy and reusing waste heat — this is how data centers become an asset for the EU’s energy transition,” Ribera added.Data centers have yet to become a political flashpoint in the 27-nation EU, as the bloc lags well behind the United States in AI development.The slower growth is partly due to already high energy costs, which weigh on European businesses and families alike.But the International Energy Agency estimates that the fast-expanding sector will account for more than 3% of overall electricity demand in the EU by 2030.“To ensure that the digital transformation truly works for our society, we must address the growing energy demand of data centers,” said EU Energy Commissioner Dan Jørgensen.“Understanding their energy and resource consumption is the essential first step toward integrating them sustainably into our energy system.”The EU will automatically generate the labels based on companies’ reports and make them available in an EU database. The first labels are expected to appear in 2027, Brussels said.The commission said it was also considering minimum performance standards for data centers.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads