EU proposes efficiency labels for data centres of at least 500 kilowatts

On September 21, Reuters reported that the European Commission proposed requiring European data centres with capacity of at least 500 kilowatts to disclose energy and water efficiency and receive an EU-designed label. The proposal does not impose consumption limits, but it would require reporting on local water stress and potential support for local energy systems, while member states and lawmakers have two months to object. For legal teams procuring AI services, data-centre location and resource performance are becoming part of regulatory and supplier diligence rather than a remote infrastructure issue. The next question is whether the disclosure regime becomes a precursor to mandatory efficiency standards as EU data-centre capacity is projected to rise from 12 gigawatts in 2025 to 28 gigawatts in 2030.