As Europe pushes forward with its green and digital transformations, the spotlight turns to the energy-intensive world of data centres. These facilities power essential online services, from banking to e-commerce, yet they account for a significant portion of the continent’s electricity consumption. Addressing their sustainability is now a critical challenge for policymakers and industry leaders alike.
Rising Energy Demands
At a recent event in Brussels, hosted by the European Data Centre Association (EUDCA) and Cloud Infrastructure Service Providers in Europe (CISPE), experts emphasised the importance of data centres. According to Alban Schmutz, CISPE’s chairman, “Without data centres, you have no internet, no mobile connectivity, no 5G or 6G. They are indispensable to our digital economy.”
Currently, data centres consume about 3% of the EU’s electricity. In Ireland, they represent a staggering 20% of the national energy use. Projections suggest this demand could double or triple in some EU states by 2030, intensifying the need for sustainable strategies.
Regulatory Efforts
The European Commission has introduced an EU-wide sustainability framework for data centres, requiring annual reports on energy and water usage, alongside efficiency metrics. Robert Muij from the Commission’s Directorate-General for Energy highlighted the importance of enforcing these measures, particularly under the Energy Efficiency Directive.
However, industry leaders have voiced concerns about the regulatory burden. “If reporting requirements are overly detailed and unnecessary, it creates inefficiencies that could hinder progress,” said Schmutz.
Innovations in Sustainability
Leading players like Amazon Web Services (AWS) are setting ambitious targets. AWS Director Niamh Gallagher shared their achievements, including meeting their renewable energy goals seven years ahead of schedule in 2023. “Our commitment to net zero operations by 2040 demonstrates our dedication to both environmental and operational excellence,” she said.
Energy Security and Capacity Challenges
Beyond sustainability, Europe faces logistical hurdles in meeting the energy demands of data centres. Irish MEP Barry Cowen highlighted how soaring energy costs, compounded by dependency on Russian gas, have exposed vulnerabilities in the energy grid. “Without substantial investment in ports and infrastructure, energy security will remain a bottleneck for progress,” he warned.
In contrast, countries like Spain are positioning themselves as attractive destinations for data centres. Spanish MEP Nicolás González Casares pointed to the country’s renewable energy capacity as a competitive advantage, promising lower costs and greener operations.
Striking a Balance
The dual challenge of powering data centres sustainably while supporting Europe’s digital growth underscores the need for balanced policies. “Data centres are critical to the EU’s green and digital transitions. Without them, we risk halting progress in banking, commerce, and connectivity,” said Cowen.
As reporting under the Energy Efficiency Directive advances, a clearer picture of the environmental and economic impact of data centres will emerge, guiding future strategies.
