A prominent organization representing European data center operators is sounding the alarm over new efficiency standards proposed by the EU. In a report meant to make its case before any regulations are finalized, the Climate Neutral Data Centre Pact warns that the measures could stifle innovation in artificial intelligence.

The Climate Neutral Data Centre Pact represents over 100 data centers and trade groups, covering more than 85% of Europe’s capacity, including industry giants like AWS, Microsoft, and Google. These members have committed to the European Green Deal, aiming for net-zero emissions, but express apprehension about the current drafts of minimum performance standards for sustainability.

While supporting the idea of sustainability standards, the Pact criticizes the proposals as strategically flawed and possibly counterproductive. One major concern is the escalating energy demand from data centers, exacerbated by growth and inadequate data for policy-making.

The Energy Efficiency Directive (EED), which mandates power use reporting and considers further regulation, raises alarms among Pact members. They argue that learning from initial reports is necessary to avoid locking in ineffective metrics, potentially distorting the market and compromising policy objectives.

The report advocates a phased approach, enabling gradual improvement in data collection and reporting. This would foster industry best practices and sound policy development over time. The current proposed focus on the largest data centers is questioned, as smaller facilities often evade scrutiny despite weaker performance.

Adjustments in regional climate adaptability and water resource availability are also missing from the proposals, claims the Pact, suggesting a more tailored approach with metrics like PUE and WUE adapted to local conditions.

The recommendation is for a comprehensive, evidence-based method rather than a hasty rollout, which members argue could deter investment in Europe’s digital economy. They warn against novel regulatory burdens that could conflict with the EU’s ambitions in AI and cloud computing. Ultimately, the Pact calls for well-designed standards that align with policy goals without hindering technological progress.

The discourse in the US on data center energy use, such as a planned AI data center in Wyoming projected to exceed the state’s entire home electricity consumption, highlights the global context in which Europe’s decisions will be made. With massive investments by major cloud service providers, regulators aim to address these expansion challenges comprehensively.