The European Union is advancing a major expansion of data center capacity as part of its broader tech sovereignty strategy, aiming to triple capacity over five years. However, a recent investigation reveals significant transparency and oversight issues that could undermine environmental accountability in this critical infrastructure growth.
What happened
Investigate Europe, in partnership with Tech Policy Press, uncovered that a confidentiality clause introduced into EU data center regulations following industry lobbying exempts site-level energy and water usage data from public disclosure. This clause was directly inserted into the delegated act of the Energy Efficiency Directive after submissions from major industry players like Microsoft and DigitalEurope advocated for total confidentiality.
This exemption runs contrary to other EU transparency laws and has been met with criticism by lawmakers. Evidence shows many data center operators have failed to submit required environmental data, despite obligations under the directive. The European Commission has gone further, reportedly instructing member states to deny public requests for these data, sustaining a lack of visibility on the environmental footprint of data centers.
Researchers analyzing data center permits in countries like the Netherlands observe uneven compliance and operational inefficiencies, such as some centers running below capacity despite arguments for urgent infrastructure expansion. Meanwhile, Members of the European Parliament (MEPs) have called on the Commission to revise the secrecy clause ahead of a new legislative package expected in early June, which includes additional data center energy efficiency rules and labeling systems.
Why it matters
Data centers are critical for digital infrastructure and AI development but are also significant consumers of energy and water. Transparency in their environmental impact is essential for public accountability, regulatory oversight, and ensuring that EU climate and sustainability goals are met.
The secrecy clause limits the public and independent researchers’ ability to assess the environmental consequences of the EU’s rapid data center growth. It also raises questions about whether infrastructure is being used effectively or whether expansion is proceeding without sufficient scrutiny, potentially leading to unsustainable resource consumption.
The controversy illustrates tensions between industry influence and public interest in EU policymaking, highlighting how strong lobbying can shape legislation in ways that may undermine transparency and environmental accountability.
Background
The EU’s Energy Efficiency Directive established initial data reporting obligations for data center operators, requiring submission of key performance indicators like energy source and water use. To specify these requirements, the European Commission prepared a delegated act detailing the metrics and reporting protocols.
During the consultation phase, industry submissions called for strict confidentiality of submitted data, resulting in a clause excluding these data from public access. The clause was incorporated almost verbatim into the final regulation. This direct lobbying influence is unusual and has drawn scrutiny.
With the EU preparing a broader tech sovereignty package—including stricter energy efficiency rules and new data center rating systems—the issue of transparency remains unresolved. Despite public outcry and parliamentary demands, the Commission has yet to commit to removing or amending the confidentiality clause.
Sources
This article is based on reporting and publicly available information from the following source:
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