EU proposes mandatory sustainability labels for data centers to curb AI energy use

The European Commission is set to introduce a new sustainability assessment system for data centres, requiring electronic labelling for both new and existing facilities. The draft aims to improve energy and water efficiency, increase the share of clean electricity, and promote the reuse of waste heat for district heating or neighboring buildings.

According to the proposal, demand from AI‑focused data centres could double the sector’s electricity use, reaching over 3 % of the EU’s total consumption by the end of the decade. A German think‑tank report estimates that an AI server can consume three to ten times more power than a conventional one. The draft notes that “in operational terms, an AI cluster of 100‑300 MW resembles less a traditional IT installation and more an energy‑intensive industrial unit linked to constrained power grids.”