EU rolls out green data-center label to curb energy and water use

Brussels unveiled an optional A–G sustainability label for large data centers powering AI, requiring disclosure of energy efficiency, water consumption and clean power uptake to boost transparency and spur decarbonization. The scheme takes effect August 2027, with later mandatory standards planned to tighten the requirements. Compliance is currently low (about 36% of sites disclose data). While some industry groups warn it could deter investment, the EU frames the label as essential to align AI infrastructure with climate goals and Europe’s competitiveness in the AI race.