The European Commission has presented a package of measures aimed at improving the energy efficiency of data centers and their integration into the European electricity system. The package includes a delegated regulation establishing a common classification and labeling system, alongside a public consultation on future minimum energy-performance standards.

The new classification system will apply to data centers with an installed IT power demand of more than 500 kW, allowing their energy and environmental performance to be compared. In addition to electricity consumption, the system will consider water use and indicators related to integration into the energy system, including clean energy generation, waste heat reuse and demand flexibility.

The Commission said data centers capable of adjusting their electricity consumption in response to grid conditions could help reduce system costs, improve grid stability and facilitate the integration of higher shares of renewable energy.

Waste heat reuse is another area under consideration. The Commission estimates that recovering around half of the waste heat generated by European data centers could provide enough heat to meet the needs of approximately 4 million households.

The delegated regulation is now subject to a two-month scrutiny period by the European Parliament and the Council. If neither raises objections, the regulation will enter into force, with the first sustainability labels for individual data centers expected in 2027. The Commission plans to review the classification system by the end of 2028.

In parallel, the Commission has launched a 12-week public consultation on potential minimum energy-efficiency requirements for data centers. Under the proposal, data centers would not be required to disclose their emissions or electricity and water consumption.

The consultation is open until Dec. 14, 2026, and its results will inform a legislative proposal expected in the second quarter of 2027.

The measures come amid rapid growth in Europe’s digital infrastructure. According to Commission data, data centers consumed around 68 TWh of electricity in the European Union in 2024. Consumption could rise to 114 TWh by 2030, driven largely by growing artificial intelligence workloads.

The European Union is also targeting a threefold increase in data center capacity