European Union: Sustainability Rating Scheme for Data Centres

In brief

The European Commission adopted a delegated regulation (“DC Label Regulation”) creating an EU sustainability label for data centres. From August 2027, data centres with installed IT power demand of 500 kW or more will receive a published A to G rating for energy and water efficiency (“Label”). The Label is generated automatically from data that operators already report to the European database. It also shows energy sourcing, waste heat reuse and grid flexibility. The Commission has opened a parallel consultation on minimum performance standards. The Label creates no new reporting duty, but it will make performance public and comparable, with effects on procurement, financing, contracts and marketing.

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