The European Commission imposes new reporting obligations on organisations with server rooms

Data centers are the foundation of today’s digital society and their role is growing. The increasing number and volume of data centers is leading to an increase in energy consumption and their efficiency is becoming increasingly important. Initiatives of the European Union (EU) such as the European Green Deal and the Energy Efficiency Directive (EED) therefore also set targets and measures to improve the energy efficiency of data centers. Ultimately, this will affect owners of larger server rooms as well as users of data centers. Toomas Kell, who is responsible for the day-to-day operation of Greenergy Data Centers in Estonia, explains what the new requirements entail.

Under the Energy Efficiency Directive, there will reportedly be an obligation for data centers in the EU, or organisations’ own server rooms with a maximum IT capacity of at least 500 kilowatts, to monitor and report certain metrics on an annual basis. Photo: Pixabay.

‘In 2018, data centers accounted for 2.7 percent of the EU’s electricity demand, and by 2030, it is forecast to reach 3.2 percent. The energy consumption of data centers around the world is forecast to triple between 2020 and 2030,’ says Kell, describing the big picture. In addition, the EU is setting a target for all data centers to be carbon neutral by 2030.

The operation of data centers is regulated under the EED. ‘Simply put, the Energy Efficiency Directive is the European Union’s legal framework for ensuring energy efficiency improvements in various sectors, including data centers. The part concerning the data centers is currently being developed. The EED will soon require data centers to systematically monitor energy efficiency and report data on a regular basis,’ explains Kell.

Who is affected by the Directive and its reporting obligations?

Under the EED, there will reportedly be an obligation for data centers in the EU, or organisations’ own server rooms with a maximum IT capacity of at least 500 kilowatts, to monitor and report certain metrics on an annual basis. Companies that use the services of data centers will be able to take it easier, as service providers need to report instead of them.

For example, Greenergy Data Centers, the largest and most modern data center in Estonia, keeps an eye on the development of reporting obligations and prepares to meet them on time. ‘A more detailed overview of the planned metrics should be available in the near future,‘ says Kell.

It is important to bear in mind that users of the hybrid cloud, who keep equipment both on their own premises and at the premises of companies providing data center services, will need to calculate whether the total capacity of their IT equipment exceeds the 500 kilowatt limit. In this case, the data center monitors and reports on the operation of the equipment on their premises and the company on the statistics of the equipment on its premises. ‘The data center can certainly help the client here and provide information on what and how to report. By working together, the requirements can be more easily met,’ says the Greenergy Data Centers executive.

What is expected to be reported?

All the details are not yet finalised, but as far as we know, the following information will have to be submitted to the EU database:

• owner of the data center / server room and location;

• data center / server room floor space, installed capacity, annual inbound and outbound data traffic and the amount of data stored and processed in the data centers;

• the performance of the data center / server room in the last full calendar year according to key performance indicators, including energy consumption, power use, temperature set points, waste heat use, water use, and renewable energy use.

A year’s worth of data to be uploaded next May

There are also bottlenecks in the plans of the EU. Under the current plans, the European Commission wants data centers or owners of server rooms with more than 500 kilowatts of IT capacity to submit annual data to the relevant database administrator from 15 May 2023 until 14 May 2024. This means that the collection of reportable data should already be underway. At the same time, it has not yet been decided which metrics will be monitored and what input information will be needed to collect. The corresponding legislation should be adopted by 31 December 2023 at the latest, i.e. by the end of the year. ‘So owners of larger server rooms are in a somewhat difficult situation, where you’re figuratively already picking berries, but you don’t know exactly which berries. Overall, the direction is fortunately clear. It is more about the details,’ says Kell, explaining the challenge ahead.

The data collected should become an important input for assessing the achievement of ambitious energy efficiency targets at the EU level, and for adjusting plans. For example, certain parts of the EED are due to be revised in mid-2025, which could mean, for example, adjusting the requirements for data centers or server rooms. But only time will tell.

Growing focus on energy sources

In addition to energy efficiency, the EU institution wants organisations with large IT capacity to monitor the origin of electricity. The aim is to encourage large consumers to use electricity from renewable sources. ‘Our data center has no problem meeting this requirement because we use 100% certified green energy. However, organisations that have long-term agreements that do not specify energy sources, are in a more difficult position. There are also data centers that are contractually obliged to offer customers the cheapest electricity available. If they now buy more expensive green energy on the market, they will have to pay the difference out of their own pockets. Such nuances can be a headache for data center operators,‘ says Kell, describing the challenges. However, there is no doubt that the future belongs 100% to renewable energy. It is only a matter of time.

Ultimately, energy efficiency in data centers is important on many levels: it helps to reduce environmental impact, save costs, and make Europe the first carbon neutral continent in the world. The new reporting obligations must be made clear and they must be complied with. The more forward-looking data centers are certainly leading the way. The data we collect is an important indicator of the extent to which we are meeting our high targets.

The rules of the Green Deal and EED are already in place and being implemented 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 are already in place. It has already put in place and implemented a number of initiatives to increase energy efficiency, promote renewable energy, reduce greenhouse gas emissions, and support a sustainable economy.

• The Energy Efficiency Directive (EED) is a legal framework that was introduced back in 2012 and has been regularly updated since then. The EED sets out requirements and obligations to improve energy efficiency in different sectors, including data centers. As regards reporting, the EED requires Member States to submit regular reports on their energy efficiency achievements and measures. The EED sets out specific deadlines and requirements for the submission of these reports, but the exact details may vary from one Member State to another. Each Member State must comply with the EED reporting obligations according to the period and timetable set.

• The Green Deal and EED rules mainly concern EU Member States and their companies and organisations, including data centers. These rules apply to all EU countries and are applied in different sectors, including energy efficiency, renewable energy, and environmental friendliness.