Definition
A proposed European Commission scheme that would require data centres to carry a mandatory label disclosing their energy and water use and overall sustainability performance. Because the AI data-centre buildout is the main driver of surging power and water demand, the label imposes a new disclosure and rating obligation on AI infrastructure operators.
Why it matters
For organisations running or buying AI compute capacity in Europe, labelling adds a reputational and reporting dimension to data-centre decisions that boards cannot ignore.