Data centers will now be required to report their CO2 emissions, energy and water consumption, and factor in environmental impacts when planning new investments. These obligations are being imposed on data center operators by the new Energy Efficiency Directive adopted by the European Parliament and Council. The new regulations will come into effect on October 10th. EU member states will be given two years to adjust their national laws to meet the new conditions. Germany is the first country to begin working on this new legislation.
The EED Directive contains a number of recommendations for various market sectors, including the telecommunication sector, which is already responsible for 5-9% of global energy consumption and over 2% of greenhouse gas emissions. Data from the International Energy Agency indicates that the data center sector currently consumes 1-1.5% of global electricity. However, forecasts predict this figure will rise to 8% by 2030. The European digital strategy has already identified the need for energy-efficient and sustainable data processing and storage, prompting the call for enhanced transparency in this sector.
The new directive suggests that all EU member states introduce requirements for data centers to collect and report data on their generated emissions. It also requires newly built facilities to be designed to minimize energy and water consumption, use low-emission supporting systems, and consume recovered heat. Based on these suggestions, EU countries should create specific regulations outlining these requirements within the given two-year period.
Wojciech Stramski, CEO of Beyond.pl stated, “The new EU directive aims to reduce energy consumption by 11.7% by 2030. All data centers exceeding 500 kW in power will be obliged to report on their energy, water and emissions consumption, as well as their green investment initiatives. Small, edge data centers typically have energy capacities around 1 MW, while traditional facilities can reach tens of megawatts (MW). This means that the vast majority of both existing and planned facilities will be subject to these regulations.”
The goal of the new legislation is to reduce EU energy consumption by 11.7% by 2030. Each member state will need to estimate its own national contribution. Furthermore, the expected annual energy savings will systematically increase: from the current 0.8% to 1.3% (2024-2025), then 1.5% (2026-2027) and finally 1.9% from 2028 onwards.
Germany has taken the initiative as the first EU country to begin working on this new legislation. The country’s Energy Services Act includes regulations governing the energy obligations of German data centers with a power greater than 300 kW and also introduces fines for non-compliance with regulations.
According to the proposed regulations, from January 1, 2024, data center operators should cover at least 50% of their electricity consumption from renewable sources. Data centers operational before July 1, 2026 must achieve an energy usage efficiency (PUE) of less than or equal to 1.5. From July 1, 2030, the PUE must be less than or equal to 1.3. Those who fail to meet this requirement will be subject to a fine of up to 100,000 EUR.
