Cloud and AI growth fuels EU push for greener data centres

Europe’s growing demand for cloud and AI services is driving a rapid expansion of data centres across the EU.

Policymakers now face the difficulty of supporting digital growth instead of undermining climate targets, yet reliable sustainability data remains scarce.

Operators are required to report on energy consumption, water usage, renewable sourcing and heat reuse, but only around one-third have submitted complete data so far.

Brussels plans to introduce a rating scheme from 2026 that grades data centres on environmental performance, potentially rewarding the most sustainable new facilities with faster approvals under the upcoming Cloud and AI Development Act.

Industry groups want the rules adjusted so operators using excess server heat to warm nearby homes are not penalised. Experts also argue that stronger auditing and stricter application of standards are essential so reported data becomes more transparent and credible.

Smaller data centres remain largely untracked even though they are often less efficient, while colocation facilities complicate oversight because customers manage their own servers. Idle machines also waste vast amounts of energy yet remain largely unmeasured.

Meanwhile, replacing old hardware may improve efficiency but comes with its own environmental cost.

Even if future centres run on cleaner power and reuse heat, the manufacturing footprint of the equipment inside them remains a major unanswered sustainability challenge.

Policymakers say better reporting is essential if the EU is to balance digital expansion with climate responsibility rather than allowing environmental blind spots to grow.

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