Regulation establishing common rating scheme for data centres

The European Commission published the Delegated Regulation establishing the common rating scheme for data centres.

We looked at the draft Regulation in our Insights Blog post: Data Centres: EU consults on Regulation for rating sustainability. As indicated, data centres with installed information technology power demand of at least 500 kW will be rated by electronic labels issued by a European database. A label will be created automatically by 15 August 2027 and every year thereafter. Labels will be publicly available in the European database.

The main change in the final Regulation as compared to the draft version is that key performance indicators, many of which appear on the electronic label, are to be included for nuclear energy consumption. For example:

• Key performance indicators will include a breakdown of energy sourcing across performance indicators which are amended/inserted in Annex II.1 of the 2024 Delegated Regulation on the first phase of the establishment of a common Union rating scheme for data centres. Indicators include: (p) total renewable energy consumption from guarantees of origin (“GOs”), (q) total renewable energy consumption from Power Purchase Agreements (“PPAs”), (r) total renewable energy consumption from on-site sources, (s) total nuclear energy consumption from GOs, (t) total nuclear energy consumption from PPAs, (u) total nuclear energy consumption from on-site sources and (v) total low-emission energy consumption.
• Sustainability indicators will include Power Usage Effectiveness (PUE), Water Usage Effectiveness (WUE), Energy Reuse Factor (ERF), Renewable Energy Factor (REF) and Low-Emission Energy Factor (LEEF).

Percentages for GO and PPA contributions to new capacity will be specified on labels. Whether flexibility services are being provided to the grid will also be specified.

It will be important for data centre operators to be familiar with the conditionality attaching to new capacity energy indicators (time/geography/asset-age conditions), which may impact their arrangements around procurement of PPAs and GOs.

The Regulation is now subject to a two-month scrutiny period by the European Parliament and the Council before being published in the OJEU and entering into force twenty days later.

Minimum performance standards

The Commission has also opened a call for evidence and public consultation until 14 December 2026 on a proposed Regulation for minimum performance standards for data centres operating in Europe. It anticipates adopting a Regulation during the second quarter of 2027.

The aim is to ensure that all new or retrofitted data centres meet a minimum performance level for energy efficiency, water use, waste-heat reuse, services to the grid and other selected sustainability criteria. The Commission indicates that, following the establishment of a reporting scheme and a rating scheme, the proposal for minimum performance standards will be the third step towards ensuring more sustainable data centres.