EU Commission Plans New Measures for Data Center Energy Consumption

The European Commission is preparing new measures to reduce the energy consumption of data centers within the EU. The initiative, which is expected to come into force in 2026, was announced by EU Energy Commissioner Dan Jørgensen at the International Energy Agency’s (IEA) Global Conference on Energy Efficiency in Brussels.

The Commission’s move is based on the growing concern about the increasing burden that data centers place on the environment and infrastructure. According to current estimates, data centers already consume around three percent of the total electricity in the European Union, with the IEA forecasting that this figure will double in the next five years. This increase is largely due to the rapid spread of artificial intelligence (AI), cloud services, and digital networking projects. In particular, the training of large language models and the operation of general AI systems require enormous computing power, often provided in continuously operating hyperscale data centers. This development raises concerns about cooling, carbon emissions, and the stability of the power supply, especially during peak load times or in regions with limited renewable energy capacity. The Commission sees the need for a coherent EU-wide strategy to manage this energy-intensive digital infrastructure.

Grid Bottlenecks Have Already Halted Data Center Projects

Several EU member states have already imposed restrictions on the construction of new data centers because they place a heavy strain on local power grids. This is particularly evident in Ireland, where the sector accounts for about 20 percent of electricity consumption, leading to a de facto moratorium on new data centers in the Dublin area. For instance, last year Ireland denied approval for the expansion of two data centers.

Part of the Green Deal

The planned measures, for which no details have yet been announced, are part of a comprehensive EU commitment to greater energy efficiency and emission reductions in energy-intensive sectors, in line with the European Green Deal and the 2030 climate targets. As early as 2023, the EU published the Energy Efficiency Directive, which requires data centers to report their energy efficiency data in a European database starting May 15, 2024.

Commissioner Jørgensen emphasized that creating an energy efficiency package for data centers is one of his ten key priorities for the next five years. This also includes mobilizing public and private financing, strengthening cooperation among stakeholders, and improving international cooperation. The Commission also plans to develop a guarantee scheme for energy efficiency solutions in collaboration with the European Investment Bank to facilitate access to financing, especially for small and medium-sized enterprises.