European Commission Introduces Energy Use Rules for Data Centers

EU proposes new rules for data center transparency

The European Commission announced a new common rating scheme for data centers on Monday. The aim of the scheme is to increase transparency around water and energy use by data centers across the EU. With Europe’s commitment to strengthen technological independence, the need for the sustainable integration of data centers is vital.

Teresa Ribera, Executive Vice-President for Clean, Just and Competitive Transition, said, “Tripling our data centre capacity cannot mean tripling the pressure on our grids, our water and our energy bills. That starts with transparency, rating large data centres depending on their impact on our energy system.”

The rating scheme will ensure transparent information concerning resource use for data centers with 500 or more kilowatt (kW) capacity. It will cover clean energy capabilities and other grid contributions, as well as the reuse of waste heat. The first sustainability labels are expected to enter into force in 2027.   

Carbon removal startup Mombak partners with Salesforce

Brazil’s Mombak, a carbon removal startup, signed a multi-year agreement with Salesforce. The software company joins McLaren Racing, Google, and Microsoft in carbon credit purchases. As carbon emissions increase with expanding AI infrastructure, Mombak expects more buyers from major technology companies.

In addition to the agreement with Salesforce, Mombak announced the first close of its Amazon Reforestation Fund II. The second restoration fund aims to raise $150 million, following the first Amazon Reforestation Fund that secured $120 million. With the initial financing round, the startup planted 15 million native trees across 15 farms in the Amazon region. Gabriel Silva, the CEO of Mombak, said, “We are only raising this second fund because we proved over the last five years ​that there is a business, there is an industry, and there is a market for this product.”

African Development Bank supports four green hydrogen projects across Africa

The African Development Bank Group has allocated $20 million in grant funding for four green hydrogen/derivatives projects spanning the African continent. Projects in Egypt, Morocco, and Namibia are centered around sustainable aviation and maritime fuels. A low-carbon iron project in South Africa will receive $5.24 million in funding. The largest funding amount, at $5.93 million, will go toward the Hyphen Project in Namibia.

The financing for these projects falls under the Africa Green Hydrogen Programme, which held an open call for proposals earlier this year. The Programme hopes to increase investment and private sector participation in the hydrogen infrastructure sector. The four projects represent 2,950 megawatt-hours (MWh) of battery energy storage capacity, 20 gigawatts (GW) equivalent of solar and wind energy generation capacity and 7 GW of electrolyzer capacity.

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Crédit Agricole joins EIB in issuing €600 million for energy grids

The European Investment Bank (EIB) and Crédit Agricole committed a combined €600 million to support the European energy grid, with €300 million in financing from each institution. Ambroise Fayolle, Vice-President of the EIB, said, “We are pleased to join forces with Crédit Agricole CIB once again to support Europe’s energy security and green transition. Following wind energy, our focus today is on energy grids and the companies that manufacture the equipment essential to their development.”

The agreement falls under the EIB’s €1.5 billion energy grids envelope, which is aimed at developing, modernizing, and reinforcing Europe’s grids. It is also supported by the European Union’s InvestEU programme. 

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: Brett Sayles.