EU weighs weaker data centre climate rules in win for Big Tech

{"text":[[{"start":8.8,"text":"The EU is set to bow to pressure from tech groups by proposing they can use cheaper offsets to counter the climate impact of gas-powered data centres, according to draft rules seen by the FT. "}],[{"start":21.1,"text":"The EU has been trying to balance its climate goals with efforts to become more competitive and build out AI infrastructure to compete with the US. The bloc hosts the world’s second-largest data centre hub after North America, according to industry data."}],[{"start":34.3,"text":"It is preparing to significantly water down plans for a “traffic light” system that rates data centres based on energy and water use, according to a draft proposal set to be discussed by member state experts on Thursday. "}],[{"start":47.599999999999994,"text":"A previous draft in March stipulated that data centres could only offset fossil fuel emissions by investing in clean energy certificates from projects commissioned in the past decade that produced power in roughly the same time and place as the data centre. "}],[{"start":61.449999999999996,"text":"But companies and lobby groups, including Amazon Web Services, Microsoft and the European Data Centre Association, all wrote to the EU to ask it to drop various requirements, citing the risk of higher costs."}],[{"start":74.64999999999999,"text":"The latest draft from June 30, seen by the FT, adopts these requests and also says certificates from nuclear energy could be considered, in a boost for nuclear-reliant countries such as France."}],[{"start":87.05,"text":"That means a data centre running through the night on Germany’s grid, which continues to use coal, can still cancel out its emissions by relying on certificates linked to solar power produced during the day in Spain. "}],[{"start":99.2,"text":"Some accounting and climate change experts say such certificates do little to curb emissions."}],[{"start":104.9,"text":"“If data centres are not powered by new, local renewables matched in real time to their energy use, they will drive up demand for volatile imported gas,” said Killian Daly, executive director at EnergyTag, a think-tank. He added that this could lead to higher energy prices and “hobble energy security”. "}],[{"start":123.80000000000001,"text":"European Commission officials and member state energy experts were due to meet on Thursday to discuss the latest proposal, people familiar with the matter said. An official noted the proposal was not final and was still subject to feedback from Thursday’s meeting. "}],[{"start":138.60000000000002,"text":"The world’s tech companies have for years insisted they can cancel out emissions through such clean energy investments. Amazon, Meta and Microsoft all have said they “match” 100 per cent of their fossil fuel energy use with clean energy certificates, even as the rising energy demands of AI push them to double down on gas power."}],[{"start":158.25000000000003,"text":"But Amazon on Wednesday published data showing its emissions from purchased electricity rising 34 per cent between 2024 and 2025. "}],[{"start":168.20000000000002,"text":"Google earlier this week said its grid-based emissions from electricity use had risen 37 per cent. But, once offset by Google’s overall clean energy investments, these emissions fell slightly year on year."}],[{"start":181.20000000000002,"text":"A major corporate climate standard-setter, the Science Based Targets Initiative, last month watered down its own proposed rules on the topic following lobbying by the tech companies."}],[{"start":191.8,"text":"Europe is the world’s fastest-warming continent and is going through a historic heatwave. At the same time, it has outlined plans to triple data centre processing capacity in the next five to seven years. "}],[{"start":203.8,"text":"The European Data Centre Association said it “supports transparent, credible and practical approaches to measuring and reducing emissions”."}],[{"start":212.85000000000002,"text":"Amazon and Microsoft did not immediately respond to requests for comment. The Commission declined to comment."}],[{"start":null,"text":"

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