The European Commission sets a new reporting obligation for organisations that own server rooms

Data centers are the foundation of today's digital society, and their role is growing. Their growing number and size bring higher energy consumption, and their efficiency matters ever more. European Union (EU) initiatives such as the European Green Deal and the Energy Efficiency Directive (EED) therefore set targets and measures to improve the energy efficiency of data centers. Ultimately this affects both the owners of larger server rooms and the users of data centers. Toomas Kell, who is responsible for the day-to-day operation of Greenergy Data Centers, explains what the new requirements bring.

Reportedly, the EED will oblige data centers in the EU, and organisations' own server rooms, with a maximum IT capacity of at least 500 kilowatts to monitor and submit certain metrics every year. Photo: Pixabay.

"In 2018 data centers accounted for 2.7 percent of the EU's electricity demand, and by 2030 that is forecast to reach 3.2 percent. Globally, data center energy consumption is predicted to triple between 2020 and 2030," Kell describes the big picture. The EU is also setting the goal that all data centers be carbon neutral by 2030.

The operation of data centers is regulated under the EED. "Put simply, the Energy Efficiency Directive (EED) is the European Union's legal framework aimed at improving energy efficiency in various fields, including data centers. The part concerning data centers is currently being developed. The EED will soon require data centers to monitor energy efficiency systematically and report data regularly," Kell explains.

Who does the directive, and the reporting obligation that comes with it, affect?

Reportedly, the EED will oblige data centers in the EU, and organisations' own server rooms, with a maximum IT capacity of at least 500 kilowatts to monitor and submit certain metrics every year. Companies that consume data center services can breathe more easily here, because the service providers report instead of them.

Estonia's largest and most modern data center, Greenergy Data Centers, for example, is keeping a close eye on the development of the reporting obligations and preparing to meet them on time. "A more precise overview of the planned metrics should be made public in the near future," Kell comments.

It is important to bear in mind here that hybrid-cloud users who keep equipment both on their own premises and with companies offering data center services have to add up whether the total capacity of their IT equipment exceeds the 500-kilowatt threshold. In that case the data center monitors and reports on the equipment located with it, and the company on the statistics of the equipment on its own premises. "The data center can certainly help the customer here and share information on what has to be reported and how. Working together, the requirements are easier to meet," the Greenergy Data Centers executive offers a solution.

What is expected to be reported?

Not all the details are settled yet; according to current knowledge, the following information will have to be submitted to the EU database:

• the owner and location of the data center or server room;
• the floor area of the data center or server room, installed capacity, annual incoming and outgoing data traffic, and the amount of data stored and processed in the data center;
• the performance of the data center or server room over the last full calendar year according to key performance indicators, including energy consumption, capacity utilisation, temperature set points, waste heat utilisation, water use and the use of renewable energy.

A year's worth of data has to be uploaded next May

The EU's plans have their bottlenecks too. Under current plans, the European Commission wants data centers or owners of server rooms with more than 500 kilowatts of IT capacity to submit a year's data, from 15 May 2023 to 14 May 2024, to the administrator of the database. That means the collection of reportable data should already be under way. At the same time it has not been finally decided which metrics will be monitored and what input information needs to be collected. The relevant legislation should be adopted by 31 December 2023 at the latest, that is, by the end of the year. "So the owners of larger server rooms are in a somewhat awkward situation where, figuratively speaking, they already have to pick berries without knowing exactly which berries. Fortunately the general direction is clear. The question is rather in the details," Kell describes the challenge ahead.

The data collected should become an important input for assessing, at EU level, how the ambitious energy-efficiency targets are being met and for adjusting plans. Certain parts of the EED are due to be reviewed in mid-2025, for example, which may mean adjusting the requirements set for data centers or server rooms. But that the future will tell.

Growing attention to energy sources

The EU institutions want organisations with large IT capacity to monitor not only energy efficiency but also the origin of their electricity. The aim is to steer large consumers towards power from renewable sources. "Our data center has no problem meeting that point, because we use 100% certified green energy. Organisations that have made long-term agreements that do not specify energy sources are in a more difficult position. There are also data centers with contractual obligations to offer customers the cheapest electricity available. If they now buy more expensive green energy on the market, they have to cover the difference out of their own pocket. Such nuances can give data center operators quite a headache," Kell describes the challenges. It can be said without hesitation, however, that the future belongs to 100% renewable energy. Getting there is only a matter of time.

Ultimately, the energy efficiency of data centers matters on several levels: it helps reduce environmental impact, save costs and make Europe the world's first carbon-neutral continent. The new reporting obligations have to be understood and met. The more advanced data centers will certainly lead the way here. The data collected is an important indicator of the extent to which we can meet the high targets.

The Green Deal and EED rules are already established and applied in the European Union

• The Green Deal strategy was adopted in 2019 and aims to make the European Union climate neutral by 2050. The initiative includes a number of measures and policies that have already been implemented. Under it, several initiatives have already been established and implemented to increase energy efficiency, promote the use of renewable energy, reduce greenhouse gas emissions and support a sustainable economy.
• The Energy Efficiency Directive (EED) is a legal framework established back in 2012 and regularly updated since. The EED sets out requirements and obligations to improve energy efficiency in various sectors, including data centers. As for reporting, the EED requires member states to report regularly on their energy-efficiency achievements and measures. The EED sets specific deadlines and requirements for submitting these reports, but the finer details may vary by member state. Each member state must follow the EED's reporting obligations according to the established period and timetable.
• The Green Deal and EED rules mainly concern the member states of the European Union and their companies and organisations, including the data center sector. These rules apply in all EU countries and to various sectors, including energy efficiency, renewable energy and environmental friendliness.