EU proposes mandatory sustainability labels for data centers

The European Commission proposed a new regulation Tuesday that would require sustainability labels for all data centers in the European Union (EU) with a capacity above 500 kilowatts, rating their energy efficiency, water use and share of clean power on an A-to-G scale.

The label is meant to address the strain expected from the EU's plan to roughly triple its data-center capacity over the next five to seven years, which officials say could put growing pressure on electricity grids, water supplies and consumer energy bills.

"Tripling our data centre capacity cannot mean tripling the pressure on our grids, our water and our energy bills," Executive Vice-President Teresa Ribera said, adding that efficient, flexible data centers running on clean energy could instead support the bloc's energy transition.

Beyond the energy and water ratings, the label will also score centers on features such as grid flexibility and waste-heat reuse. The first labels are expected by August 2027, after the regulation completes a two-month review by the European Parliament and the Council of the EU. The Commission also opened a public consultation on minimum data-center performance standards, running through Dec. 14, 2026.

This brief is based on reporting by Mark Segal, published Sept. 22, 2026, on ESG Today. Read the original: https://www.esgtoday.com/eu-to-launch-mandatory-sustainability-labels-for-data-centers/