As the world grapples with the environmental impact of data centers, we’re seeing different countries try different approaches to mitigating environmental harms. Part of the EU’s plan includes a novel data center labeling regulation. This regulation will compile a database of data centers operating in the EU and display information about their electricity and water consumption. The delegated regulation describes the scheme stating:
“This Regulation establishes a common Union scheme for rating the sustainability of data centres in the Union. The European database on data centres established by Commission Delegated Regulation (EU) 2024/1364 (‘the European database’) shall rate data centres by means of electronic labels issued based on information and key performance indicators communicated by data centre operators to the European database. For the purpose of issuing a label for data centres, the European database shall use the Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE) classes defined in Annex I, based on the calculation methodologies of Annex III of Commission Delegated Regulation (EU) 2024/1364”
The disclosures required in the data center labeling regulation will inform local communities and governments as they decide whether to accept or reject data center projects. The EU also hopes that by making this information transparent, competition will drive data center developers to more efficient designs. The European Parliament and Council will have two months to object to the content of the new delegated regulation. After that, it will enter into force.
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