The EU will force data centers to disclose how much water and energy they are using

The European Commission has introduced a new regulatory framework, the Data Center Energy Efficiency Package, requiring data centers to transparently report their energy and water consumption. The mandate applies to all facilities with a power demand of at least 500kW. Under this new EU-wide rating scheme, operators must disclose key metrics, including Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE), renewable energy integration, and waste heat reuse. This initiative aims to manage the environmental impact of the EU's plan to triple its data center capacity over the next seven years. By implementing these standardized labels, similar to those used for household appliances, the Commission intends to ensure that the growth of digital infrastructure does not place undue pressure on local power grids and water supplies. The first ratings are expected to be published later this year, with a formal review of the policy's effectiveness scheduled for 2028.