The EU will force data centers to disclose their energy and water use

The European Union has introduced a new legislative proposal aimed at increasing transparency within the data center industry. Under the new rules, data center operators will be required to disclose detailed information regarding their energy consumption and water usage. This initiative serves as a precursor to the implementation of mandatory minimum performance standards for data centers across member states. By establishing a sustainability labeling system, the EU intends to hold operators accountable for their environmental footprint as the demand for digital infrastructure continues to surge. The policy is designed to encourage greater efficiency and sustainability in a sector that is increasingly scrutinized for its high resource consumption. This move aligns with broader European efforts to align digital growth with the bloc's ambitious climate goals, ensuring that the rapid expansion of cloud and computing capacity does not come at the expense of environmental sustainability.