Wednesday, June 3, 2026

EU sets energy standards for data centers amid concern over rising power consumption

June 3, 2026

On Wednesday, the European Union announced that it would develop minimum energy efficiency?standards? for data centers, as concern grew over their rapid rise in power consumption. EU data center capacity is expected double over the next few years to 28 gigawatts in 2030, up from 12 GW. This expansion will increase their share in EU electricity consumption above the current 2.5%.

The European Commission announced that it would create minimum performance standards both for new and existing data centers, with "needs assessments" due by the year 2027.

Data centres are power hungry and drive the rise in computing and AI. Their heavy energy consumption could slow Europe's clean-energy transition, if fossil-fuel plants are left?running for longer or more are built to meet the demand. It could also?increase power costs as grids are put under stress.

The Commission stated that "if these challenges are not addressed at EU level, they could become more difficult to solve as energy consumption in this sector is expected increase." According to the International Energy Agency, data centres will account for 20% of the growth in electricity demand in advanced economies. The EU also works on a sustainability rating for data centres that would include criteria such as water consumption and clean energy. Large?facilities will have to make this information public.

The proposal that was expected to be released on Wednesday has been postponed. Officials said the Commission was still discussing issues, including "how to evaluate data centres powered by nucleo-energy". The?Commission spokesperson didn't immediately respond to a comment request. These plans are part a larger EU 'tech package' aimed at increasing domestic?cloud- and AI-capacity and reducing the reliance on Big Tech. The use of generative AI for new energy projects, and the funding of AI tools that help manage Europe's grid are also measures. Reporting by Kate Abnett. Mark Potter (Editing)

(source: Reuters)

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