EU proposes energy and water labels for data centres above 500 kW

On September 21, Reuters reported that the European Commission proposed requiring data centres with at least 500 kilowatts of installed IT power to disclose energy and water efficiency through an EU label. The proposal would contextualize water use against local scarcity and could show contributions from recovered waste heat, but it would not impose consumption limits or require publication of total power use. Operators, developers and their counsel should treat the label as a new diligence and siting variable, particularly because data centres already account for about 2.5% of EU electricity use and capacity is projected to rise from 12 gigawatts in 2025 to 28 gigawatts in 2030. The measure remains subject to a two-month objection period, so counsel should distinguish the proposed disclosure mechanics from final obligations.