What the EU is proposing

The package includes several key components:

• A common EU sustainability rating scheme for data centres, covering energy efficiency, water use, waste heat recovery, and renewable energy sourcing .
• Mandatory reporting under the recast Energy Efficiency Directive (EED 2023/1791) for all data centres above 500 kW, who must submit KPIs (PUE, cooling efficiency, total energy use, water consumption, heat reuse) to a European Database .
• A new delegated regulation amending the existing reporting framework (EU/2024/1364) to expand the scope of acceptable energy certificates .
• The Commission also proposed a regulation in December 2025 (COM(2025) 984) designating data centres as a strategic sector, with faster environmental impact assessment procedures .

How Big Tech and industry groups lobbied for change

Industry groups — led by Microsoft, DigitalEurope (whose members include Amazon, Google, and Meta), and the European Data Centre Association (EUDCA) — pushed for more lenient rules on several fronts :

• Keeping individual data centre data secret: Microsoft and DigitalEurope successfully argued that facility-level energy and water consumption data should not be made public, citing commercial confidentiality. Investigative research by AlgorithmWatch and Corporate Europe Observatory found the Commission “copy-pasted” a Microsoft-drafted amendment that keeps individual data centre environmental data hidden from public view .
• Expanding eligible energy certificates: Industry argued that restricting acceptable certificates to only “new” renewable energy was unworkable, and that nuclear power and cross-border renewable energy matching (also called “market-based” accounting) should count toward sustainability ratings .
• Delaying the label: The industry push contributed to delaying the sustainability label (originally planned for 2027) amid a dispute over whether nuclear energy certificates should be included .

DigitalEurope’s formal position paper in December 2025 called for a longer implementation timeline, simplified reporting for smaller facilities, and broader acceptance of Guarantees of Origin (GOs) including nuclear .

Specific adjustments made from original proposals

According to a leaked draft regulation reported by the Financial Times and covered by multiple outlets, the revised framework includes these key relaxations :

• Expansion of acceptable energy certificates: The original stricter proposal limited green energy accounting to “additional” or “new” renewable energy. The revised version now accepts Guarantees of Origin (GOs) from nuclear power plants and allows cross-border matching of renewable energy purchases, not just on-site or same-country generation .
• No mandatory public disclosure: Instead of making individual data centre energy and water data public (as originally envisioned), the revised rules require only aggregated or confidential reporting to authorities, keeping facility-level data out of public databases .
• Delayed sustainability label: The planned EU data centre sustainability label, originally set to apply from August 2027, has been postponed due to the nuclear-certificate dispute .

What critics say about the weakened rules

Critics argue the revised framework has been significantly weakened to the point where it may not deliver meaningful emission reductions:

• “Greenwashing via certificates”: Allowing nuclear GOs and cross-border renewable matching means data centres can claim “green” energy without actually adding new renewables to the grid or reducing real emissions .
• Secrecy prevents accountability: Keeping individual facility data secret means researchers, local communities, and regulators cannot assess the actual environmental impact of specific data centres or compare operator performance .
• No binding PUE mandate at EU level: While Germany has introduced a hard PUE ceiling (1.2 for new builds from July 2026), the EU-wide framework still relies heavily on voluntary industry targets .
• Low compliance: Only 36% of EU data centres have reported their energy use so far under the mandatory scheme, raising questions about enforcement .
• Experts cited by the Financial Times say the changes are a “concession to Big Tech” driven by pressure to rapidly build AI infrastructure, and that the revised framework will not drive real emission reductions because it relies on accounting tricks rather than actual decarbonisation .

How Big Tech’s own emissions are surging

While lobbying for more lenient rules, the same companies have seen their own emissions spike dramatically as AI data centre buildout accelerates:

A UN agency report found that indirect (Scope 2 and 3) emissions from Amazon, Google, Meta, and Microsoft collectively rose by 150% over three years as AI expansion drove massive electricity consumption . The LA Times reported that Amazon’s emissions rose 16% in 2025 alone, driven by data centre construction and fossil fuel-powered energy .

The projected growth: EU data centre capacity by 2030

The EU aims for climate-neutral data centres by 2030 , but capacity is expanding so fast that efficiency gains are being overwhelmed:

• EU data centre electricity consumption is projected to grow from roughly 70-80 TWh today to an estimated 150-200 TWh by 2030, potentially making up 5-7% of total EU electricity demand .
• The European Commission has recognised data centres as a “strategic sector” and is streamlining approval procedures to accelerate buildout .
• The Climate Neutral Data Centre Pact (industry self-regulation) sets PUE targets of 1.3 for new facilities in cool climates by 2025 and 1.4 elsewhere, but actual capacity growth is outpacing efficiency gains .
• Accenture estimated that AI data centres’ carbon emissions globally are on track to surge 11-fold by 2030 .

Broader context: How Microsoft ghostwrote EU secrecy rules

In April 2026, investigative journalism from AlgorithmWatch, Corporate Europe Observatory, and Investigate Europe revealed that the European Commission copied and pasted an amendment drafted by Microsoft and DigitalEurope into the delegated regulation governing data centre reporting .

The amendment in question: individual data centre energy and water consumption data shall NOT be made public. Instead, only aggregated data will be published. This means citizens, researchers, and local governments cannot verify the environmental claims of specific data centre operators or compare facilities.

The Commission denied the allegation of “ad verbatim copy-pasting” , but the investigative report showed that the final regulatory text matched Microsoft’s proposed wording nearly word-for-word, and that the Commission removed earlier language that would have required public disclosure . This is widely seen as a significant lobbying victory for Big Tech that restricts transparency and accountability for the energy and water footprint of Europe’s fastest-growing electricity consumers.

The tech industry’s lobbying efforts have reached record levels: the digital industry spent €151 million per year to influence EU decision-making in 2025, a 33.6% increase since 2023 . Between January and June 2025 alone, Big Tech representatives held 378 lobbying meetings with senior Commission officials and MEPs, averaging three meetings per working day .

What the EU is proposing

The package includes several key components:

• A common EU sustainability rating scheme for data centres, covering energy efficiency, water use, waste heat recovery, and renewable energy sourcing .
• Mandatory reporting under the recast Energy Efficiency Directive (EED 2023/1791) for all data centres above 500 kW, who must submit KPIs (PUE, cooling efficiency, total energy use, water consumption, heat reuse) to a European Database .
• A new delegated regulation amending the existing reporting framework (EU/2024/1364) to expand the scope of acceptable energy certificates .
• The Commission also proposed a regulation in December 2025 (COM(2025) 984) designating data centres as a strategic sector, with faster environmental impact assessment procedures .

How Big Tech and industry groups lobbied for change

Industry groups — led by Microsoft, DigitalEurope (whose members include Amazon, Google, and Meta), and the European Data Centre Association (EUDCA) — pushed for more lenient rules on several fronts :

• Keeping individual data centre data secret: Microsoft and DigitalEurope successfully argued that facility-level energy and water consumption data should not be made public, citing commercial confidentiality. Investigative research by AlgorithmWatch and Corporate Europe Observatory found the Commission “copy-pasted” a Microsoft-drafted amendment that keeps individual data centre environmental data hidden from public view .
• Expanding eligible energy certificates: Industry argued that restricting acceptable certificates to only “new” renewable energy was unworkable, and that nuclear power and cross-border renewable energy matching (also called “market-based” accounting) should count toward sustainability ratings .
• Delaying the label: The industry push contributed to delaying the sustainability label (originally planned for 2027) amid a dispute over whether nuclear energy certificates should be included .

DigitalEurope’s formal position paper in December 2025 called for a longer implementation timeline, simplified reporting for smaller facilities, and broader acceptance of Guarantees of Origin (GOs) including nuclear .

Specific adjustments made from original proposals

According to a leaked draft regulation reported by the Financial Times and covered by multiple outlets, the revised framework includes these key relaxations :

• Expansion of acceptable energy certificates: The original stricter proposal limited green energy accounting to “additional” or “new” renewable energy. The revised version now accepts Guarantees of Origin (GOs) from nuclear power plants and allows cross-border matching of renewable energy purchases, not just on-site or same-country generation .
• No mandatory public disclosure: Instead of making individual data centre energy and water data public (as originally envisioned), the revised rules require only aggregated or confidential reporting to authorities, keeping facility-level data out of public databases .
• Delayed sustainability label: The planned EU data centre sustainability label, originally set to apply from August 2027, has been postponed due to the nuclear-certificate dispute .

What critics say about the weakened rules

Critics argue the revised framework has been significantly weakened to the point where it may not deliver meaningful emission reductions:

• “Greenwashing via certificates”: Allowing nuclear GOs and cross-border renewable matching means data centres can claim “green” energy without actually adding new renewables to the grid or reducing real emissions .
• Secrecy prevents accountability: Keeping individual facility data secret means researchers, local communities, and regulators cannot assess the actual environmental impact of specific data centres or compare operator performance .
• No binding PUE mandate at EU level: While Germany has introduced a hard PUE ceiling (1.2 for new builds from July 2026), the EU-wide framework still relies heavily on voluntary industry targets .
• Low compliance: Only 36% of EU data centres have reported their energy use so far under the mandatory scheme, raising questions about enforcement .
• Experts cited by the Financial Times say the changes are a “concession to Big Tech” driven by pressure to rapidly build AI infrastructure, and that the revised framework will not drive real emission reductions because it relies on accounting tricks rather than actual decarbonisation .

How Big Tech’s own emissions are surging

While lobbying for more lenient rules, the same companies have seen their own emissions spike dramatically as AI data centre buildout accelerates:

A UN agency report found that indirect (Scope 2 and 3) emissions from Amazon, Google, Meta, and Microsoft collectively rose by 150% over three years as AI expansion drove massive electricity consumption . The LA Times reported that Amazon’s emissions rose 16% in 2025 alone, driven by data centre construction and fossil fuel-powered energy .

The projected growth: EU data centre capacity by 2030

The EU aims for climate-neutral data centres by 2030 , but capacity is expanding so fast that efficiency gains are being overwhelmed:

• EU data centre electricity consumption is projected to grow from roughly 70-80 TWh today to an estimated 150-200 TWh by 2030, potentially making up 5-7% of total EU electricity demand .
• The European Commission has recognised data centres as a “strategic sector” and is streamlining approval procedures to accelerate buildout .
• The Climate Neutral Data Centre Pact (industry self-regulation) sets PUE targets of 1.3 for new facilities in cool climates by 2025 and 1.4 elsewhere, but actual capacity growth is outpacing efficiency gains .
• Accenture estimated that AI data centres’ carbon emissions globally are on track to surge 11-fold by 2030 .

Broader context: How Microsoft ghostwrote EU secrecy rules

In April 2026, investigative journalism from AlgorithmWatch, Corporate Europe Observatory, and Investigate Europe revealed that the European Commission copied and pasted an amendment drafted by Microsoft and DigitalEurope into the delegated regulation governing data centre reporting .

The amendment in question: individual data centre energy and water consumption data shall NOT be made public. Instead, only aggregated data will be published. This means citizens, researchers, and local governments cannot verify the environmental claims of specific data centre operators or compare facilities.

The Commission denied the allegation of “ad verbatim copy-pasting” , but the investigative report showed that the final regulatory text matched Microsoft’s proposed wording nearly word-for-word, and that the Commission removed earlier language that would have required public disclosure . This is widely seen as a significant lobbying victory for Big Tech that restricts transparency and accountability for the energy and water footprint of Europe’s fastest-growing electricity consumers.

The tech industry’s lobbying efforts have reached record levels: the digital industry spent €151 million per year to influence EU decision-making in 2025, a 33.6% increase since 2023 . Between January and June 2025 alone, Big Tech representatives held 378 lobbying meetings with senior Commission officials and MEPs, averaging three meetings per working day .