EU Data Centre Green Labels Allow Fossil Fuel Reliance

The European Commission’s upcoming efficiency grading system, set to launch in August 2027, targets facilities exceeding 500 kilowatts. While the scheme aims to manage the strain on grids and water supplies, critics argue that the lack of hourly energy matching undermines its environmental integrity. By relying on yearly certificate accounting, facilities can technically achieve high efficiency ratings despite burning fossil fuels during peak demand hours.

Brussels intends to triple data centre capacity within seven years to support artificial intelligence development. Teresa Ribera, executive vice president of the commission, warned that this expansion must not triple the pressure on water resources and energy bills. However, the current rules remain permissive, counting nuclear power as low-emission energy alongside renewables while failing to address the temporal gap between energy consumption and green energy generation.