The European Union is preparing a new legislative initiative focused on improving the energy efficiency of data centres across the bloc, according to EU Energy Commissioner Dan Jørgensen. Speaking at a conference in Brussels on Thursday, Jørgensen said, “I will propose a data centre energy efficiency package,” although he did not provide further specifics at this stage.

A Critical Step Toward Greener Digital Infrastructure

As the EU continues to push for carbon neutrality by 2050, energy-intensive sectors like data centres have come under increasing scrutiny. These facilities, which power everything from cloud computing to streaming services and artificial intelligence, consume massive amounts of electricity and contribute significantly to carbon emissions.

Although Jørgensen did not elaborate on the contents of the forthcoming package, the initiative is expected to introduce new regulatory standards or incentives aimed at improving energy performance, encouraging renewable integration, and possibly mandating more transparent reporting of energy usage by data centre operators.

Rising Demand, Rising Energy Use

Data centre energy consumption in the EU has surged in recent years. According to the European Commission’s own estimates, data centres accounted for around 2.7% of electricity use in the EU in 2018, and this figure is projected to increase to over 3.2% by 2030 without intervention. With the proliferation of AI, cloud-based applications, and high-performance computing, that trajectory could climb even faster unless efficiency gains are implemented.

The push to regulate the sector aligns with broader European digital and climate goals. The Commission has previously set a target to make data centres climate-neutral by 2030, a commitment outlined in its Digital Strategy and European Green Deal.

Potential Elements of the Efficiency Package

While official details remain under wraps, experts and industry stakeholders anticipate that the EU’s upcoming package could include:

• Energy efficiency benchmarks and minimum performance standards for new and existing data centres.

• Mandatory energy usage reporting and public disclosure to increase transparency and promote best practices.

• Integration with renewable energy sources, such as solar and wind, possibly requiring data centres to procure green power or use energy storage systems.

• Waste heat reuse obligations, where applicable, to encourage the redirection of excess heat into local heating networks.

• Tax incentives or funding schemes for retrofitting existing infrastructure with more energy-efficient cooling systems and server technology.

Industry Readiness and Regulatory Landscape

Several tech companies operating large-scale data centres—such as Amazon, Microsoft, Google, and Meta—have already committed to decarbonization targets, with many investing in renewable power purchase agreements and advanced cooling technologies. However, the industry’s voluntary efforts have not been uniform, particularly among smaller operators and colocation service providers, making binding regulations increasingly likely.

The EU has also laid groundwork for action through the Energy Efficiency Directive, which includes provisions for data centre monitoring and encourages member states to promote digital sustainability. Moreover, the Climate Neutral Data Centre Pact, a self-regulatory initiative backed by more than 100 operators and associations, has served as a testing ground for voluntary energy and sustainability benchmarks.

EU’s Broader Green and Digital Ambitions

The upcoming package on data centre efficiency fits within a broader pattern of the EU aligning its climate agenda with the rapid digitization of society. As more of Europe’s economy relies on cloud computing, artificial intelligence, and edge computing, the need to ensure these technologies do not undermine environmental goals has grown more urgent.

In parallel with efforts to green the digital sector, the EU is also pushing forward with its Net-Zero Industry Act, Energy Performance of Buildings Directive, and broader Fit for 55 climate package—all designed to put the EU on a firm path toward cutting emissions by 55% by 2030 and achieving net-zero by 2050.

Next Steps and Industry Response

Commissioner Jørgensen did not outline a timeline for the release or implementation of the data centre energy package, but his comments signal that proposals could be put forward later in 2025. Stakeholders in the technology, energy, and environmental sectors are expected to weigh in once the draft measures are released, with possible revisions ahead of adoption by EU institutions.

Industry leaders have cautiously welcomed the prospect of regulation, noting that clear and consistent standards could provide certainty for long-term investments in sustainable digital infrastructure.

As the EU continues to navigate the twin transitions of digitalization and decarbonization, the energy efficiency of data centres stands as a crucial nexus point. The forthcoming policy package could serve as a model for other regions grappling with the environmental consequences of a data-driven economy.