The European Commission on Monday proposed new rules requiring data centers with a capacity of 500 kilowatts (kW) or more to publicly disclose their energy and water consumption. The measure is a response to growing concerns over resource use in the rapidly expanding sector, which is expected to triple its capacity in the EU over the next seven years to support AI development.

The regulation would establish an EU-designed labelling system to rate data center efficiency, though it would not impose direct limits on energy or water use. This information, along with data on waste heat reuse, would be compiled in a public database. The proposal needs approval from EU member states and the European Parliament, who have two months to object before the rules take effect.