The EU proposes rules requiring data centers with a capacity of 500+ kW to disclose their energy and water efficiency using an EU-designed labelling system (Kate Abnett/Reuters)

The EU is proposing new disclosure rules for data centers larger than 500 kW, requiring them to report energy and water efficiency through an EU-designed labeling system. For CIOs and technology leaders, this signals tighter regulatory scrutiny on digital infrastructure and increases the strategic importance of sustainability metrics, operational transparency, and efficiency investments across data center and cloud portfolios.