The European Commission has introduced a draft regulation requiring data centers to disclose energy and water efficiency metrics. This initiative aims to address environmental concerns and resource consumption linked to the growth of artificial intelligence.
To reduce reliance on US tech firms, the EU intends to triple its local data center capacity over the next five to seven years. Total capacity is projected to rise from 12 GW last year to 28 GW by 2023. Currently, these facilities account for approximately 2.5% of the EU's total electricity consumption.
Under the proposed rules, operators with an installed capacity of 500 kW or more must report their Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE). Companies must also disclose the correlation between their water consumption and local water stress levels, as well as their capacity to provide waste heat recovery services.
The regulation focuses on transparency rather than setting hard caps on total consumption. However, the Commission noted that this rating system could serve as a precursor to mandatory minimum efficiency standards. The proposal is currently under review by member states and the European Parliament, with a potential implementation date in two months.
