In focus: Data centres – an energy-hungry challenge

Data centres are a vital infrastructure supporting our ever-growing use of cloud storage, social media, AI, streaming services and more.

They're also an increasingly hot topic of the clean transition, as they consume significant amounts of energy.

How much energy do data centres consume?

According to the International Energy Agency (IEA) , data centres are responsible for about 1.5%, or 415 Terawatt-Hours (TWh), of the world's total yearly electricity consumption. This has grown by 12% per year over the last 5 years and projections indicate that it is on course to more than double towards 945 TWh by 2030, primarily due to the substantial growth of energy-intensive accelerated computing which is used mainly for AI purposes.

Looking at the EU specifically, in the absence of precise consumption data (a challenge which the EU is addressing - we'll come back to that later in the article!), the IEA estimates that the energy use of data centres in 2024 was 70 TWh. Consistent with the global trend, a significant increase is expected in the coming years - towards 115 TWh by 2030.

What does this mean for the energy sector?

In the context of our efforts to use energy more efficiently, the rising energy consumption of data centres is certainly challenging.

EU countries are working towards an ambitious energy efficiency target of reducing final energy consumption by at least 11.7% by 2030, compared to the 2020 projections for energy use in 2030. At international level, the EU has been instrumental in spear-heading the global pledge to double the rate of energy efficiency improvements worldwide, from about 2% to over 4% by 2030 - along with tripling the world's installed capacity of renewable energy sources.

Particularly challenging for the energy system is the rate at which data centres - and thus their energy needs - are increasing, and the fact that this increase is usually met with a lack of available capacity to connect to the grid.

…and for sustainability more generally?

The challenge presented by data centres is not confined to their growing appetite for energy. They also have a substantial environmental and climate impact.

One factor here is the large quantities of water they need for cooling purposes. Another is CO₂ emissions, if the sources of power they use to operate are not decarbonised.

In material terms, data centres rely on various critical raw materials and generate a significant amount of electronic waste.

How can the EU overcome these challenges?

It's in Europe's best interest to have highly energy efficient and sustainable data centres and ensure that they support, rather than detract from the clean energy transition. This calls for more reuse of waste energy and more use of renewable energy sources.

Watch this space: Our upcoming initiatives

To further advance our work in this regard, the Commission is currently developing a data centre energy efficiency package- due for publication in early 2026. As a first output, the package will create a label for data centres in Europe. This label will include information on the energy and water use of data centres as well as the use of renewable energy sources.

In parallel, the Commission is developing a strategic roadmap for digitalisation and AI in energy. It will build on existing measures to help guide the way forward for the sustainable integration of data centres into the energy system, and tap into the potential of digital technologies to make the energy system more efficient.

Transparency is key

A fundamental challenge in evaluating and regulating the sustainability of data centres has been the lack of actual consumption data in the public discourse. Greater transparency from data centre operators is therefore needed.

Responding to this need, recent revisions of the EU's energy efficiency legislation introduced an obligation for the monitoring and reporting of the energy performance and sustainability of data centres. A European database, prepared by the Commission, collects and publishes data relevant for the energy performance and water footprint of data centres with a significant energy consumption.

More information on the Commission's support to help EU countries and reporting data centres better understand the database and fulfil their reporting obligations, is available online.

EU Code of Conduct for Data Centres

The EU Code of Conduct for Data Centres is a voluntary initiative which encourages data centre operators and owners to adopt best practices that reduce energy consumption and promote sustainability. In March 2025, the latest version of the list of identified and recognised best practices for data centre energy efficiency was published.

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