5–8 minutes

EU’s data centre policy framework

Dr Pawel Czyzak

An overview of EU legislation related to data centers

Last updated: September 23, 2026

Summary

  • EU data center policy can be split into three streams: efficiency and transparency (EED and related); growth targets, acceleration areas (CADA); grids and power (market design, grids package)
  • Current obligations focus on reporting (EED since 2024 and the rating/labelling scheme from September 2026)
  • Minimum performance standards are the first step towards actual enforcement of the above, with a call for evidence running until December 14, 2026. These will cover energy and water consumption, waste heat recovery, and potentially grid services like flexibility
  • CADA is an attempt to bridge the different streams, using the data from the EED reporting and the newly announced labels to set standards for AI acceleration zones

Stream 1: Efficiency and transparency

1.1 Energy Efficiency Directive

In force, September 2023

Directive (EU) 2023/1791 of the European Parliament and of the Council of 13 September 2023 on energy efficiency and amending Regulation (EU) 2023/955 (recast)

The main relevant points are:

  • Art. 12(1): Member States must require data centres with installed IT power demand of 500 kW or more to make Annex VII information (floor area, installed capacity, power consumption, water consumption, waste heat reuse, clean power use, among others) publicly available, and report it to an EU database.
  • Art. 12(4): Member States must encourage data centres of 1 MW or more to take into account the best practices of the European Code of Conduct for Energy Efficiency in Data Centres.
  • Art. 12(5): the Commission must assess the reported data and, if appropriate, propose further measures, including minimum performance standards. This is the mandate for the MPS below.

However, there’s a disclaimer: “except for information subject to Union and national law protecting trade and business secrets and confidentiality”.

There’s also Art. 26 (6): data centres with energy input above 1 MW must use waste heat or other waste-heat recovery applications, unless technically or economically infeasible. That last part is again a loophole, and leaves space for Member States to properly enforce it.

1.2 EED reporting scheme

In force, March 2024

Commission Delegated Regulation (EU) 2024/1364 of 14 March 2024 on the first phase of the establishment of a common Union rating scheme for data centres.

This created the European database on data centres and the KPI set: energy, water, waste heat, renewables, ICT capacity and data traffic.

Reporting deadlines are on 15 May every year.

First-round, reported in COM(2026) 500, shows mixed results: only about 36% of the estimated in-scope data center population reported data. Six Member States reported zero data centers, and five Member States have reported less than 3. 70% of the reported data was assessed to be reliable.

Individual-site data was confidential. Only aggregates were published.

1.3 Rating scheme and label

Adopted by Commission (September 2026), waiting for EP and Council

COMMISSION DELEGATED REGULATION (EU) of 21.9.2026 supplementing Directive (EU) 2023/1791 of the European Parliament and of the Council and amending Commission Delegated Regulation (EU) 2024/1364 as regards the establishment of a common Union rating scheme for data centres

Adopted on 21st September 2026, it’s now subject to 2-month scrutiny by the European Parliament and the Council before entering into force.

Proposes the data center label, assessing data centers on energy and water efficiency, clean power use, but also flexibility and waste heat reuse.

The first labels will be generated by 15 August 2027, then updated annually. Labels will be public.

The label structure is shown above.

  • PPAs and GOs must come from a bidding zone interconnected to the data centre’s zone, which can be in another Member State. No double counting is allowed, so GOs generated by the operator’s own PPAs or on-site assets must be cancelled by the operator.
  • “New capacity” shares:
    • PPA contribution: assets commissioned or substantially refurbished within the last 10 years. There is no temporal-matching requirement.
    • GO contribution: the same 10-year test, plus time-matching.
    • “Refurbishment extending operational life, including safety reviews” means nuclear life extensions could count as “new.”
  • Grid flexibility. A yes/no field defined very broadly: peak shifting, “flexibility of any type,” fast frequency response.
  • Waste-heat-reuse is a “readiness” declaration, does not measure actual heat production.

1.4 Minimum performance standards

Call for evidence, September 2026

Call for evidence and open public consultation for the establishment of minimum performance standards for data centres in Europe

The impact assessment is scheduled for later in 2026, the call for evidence closes 14 December 2026, with Commission adoption scheduled for Q2 2027.

This is the third step after the data reporting and the labels, actually implementing requirements on data center design and efficiency. It will require new or retrofitted data centers to meet minimum levels for energy efficiency, water use, waste-heat reuse, services to the grid and other criteria.

Stream 2: Growth and siting

2.1 Cloud and AI Development Act (CADA)

Proposal, June 2026

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a framework of measures for strengthening Europe’s cloud and AI ecosystem (Cloud and AI Development Act)

The proposal from June 2026 sets an overarching goal to at least triple EU data center capacity in the next 5-7 years. The exact numbers are not clarified – on both the timeline and the capacity scale-up.

CADA introduces Acceleration Zones similar to RAAs:

  • At least one per Member State, designated within 6 months of entry into force.
  • Within the Acceleration Zones, permitting should be done within 12 months via single points of contact.
  • Setting the Acceleration Zones must consider grids, access to clean power, waste-heat potential, and there’s a preference for brownfield sites.
  • AZs must also be linked to system operators’ network development plans.
  • Data centers within the Acceleration Zones must meet sustainability requirements, aligned with the EED KPIs (and presumably the rating scheme).

Separately, CADA introduces Strategic projects, that benefit from a faster permitting process, if they meet criteria like improving grid stability (projects with co-located clean power and storage), meeting public sector functions, supporting European manufacturing of chips.

Stream 3: Grids and power market

3.1 Electricity market design

In force, June 2024

Directive (EU) 2024/1711 of the European Parliament and of the Council of 13 June 2024 amending Directives (EU) 2018/2001 and (EU) 2019/944 as regards improving the Union’s electricity market design (Text with EEA relevance)

and

Regulation (EU) 2024/1747 of the European Parliament and of the Council of 13 June 2024 amending Regulations (EU) 2019/942 and (EU) 2019/943 as regards improving the Union’s electricity market design (Text with EEA relevance)

It obliges Member States to set up flexible connection frameworks (Art. 6a in the Directive).

3.2. Grids Package

In force, December 2025

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS

‘European Grids Package’

The Grids Package is only partially relevant, but it recommends moving from first-come-first-served to first-ready-first-served connection queues, and adding “use it or lose it” rules (so you’re grid connection might be reduced if you’re not using it in full). Plus calls for the implementation of capacity maps and flexible connections.

3.3. Strategic Roadmap for Digitalisation and AI in Energy

In force, June 2026

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Strategic Roadmap for Digitalisation and AI in the Energy Sector

The flagship action is a a model tripartite agreement (data centers, grid and energy actors, public authorities) that covers grid-planning information, siting, transparency of connection requests, PPAs, flexibility, waste heat and flexible connections.

It also set the timeline for the rating scheme and MPSs.

  • Ecodesign for servers and storage (Regulation 2019/424). This sets binding product rules, such as minimum efficiency of the internal power supply unit or minimum active state efficiency for servers.
  • AI Act. It imposes transparency requirements on models (not data centers), including energy consumption reporting.
  • CSRD and EU Taxonomy for relevant companies
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