European lawmakers are escalating pressure on the European Commission over draft rules that they say would hide the environmental impact of data centres from public scrutiny. In a letter sent to Environment Commissioner Jessika Roswall, 35 Green and Socialist MEPs allege that the EU executive has incorporated text “almost word-for-word identical to wording suggested by the US tech company Microsoft and the lobby group DigitalEurope.”
The accusation follows an investigation by Corporate Europe Observatory and AlgorithmWatch, which found that the Commission’s proposed rule on data centre ratings appears to have been lifted directly from Microsoft’s submissions. “It is one thing for Microsoft to seek to protect its interests; it is quite another for the Commission to incorporate its demands almost word for word into European law,” said David Cormand, a Greens/EFA MEP from France.
Transparency vs. Trade Secrets
At the heart of the dispute is a provision that would keep information on individual data centres’ energy use and emissions confidential. The MEPs argue this goes far beyond protecting legitimate trade secrets and would effectively block public access to data that is critical for assessing the environmental footprint of these facilities. “The Commission has granted Big Tech an early win: crucial information on individual data centres’ energy use, and their environmental and climate impact will be kept secret – despite the underlying directive explicitly calling for their publication,” stated Corporate Europe Observatory.
The signatories contend that the provision undermines the intent of the EU’s Energy Efficiency Directive, which was designed to improve transparency and allow public scrutiny of high-energy industries. They are calling for the deletion of the contested amendment and a return to “full transparency.”
Balancing AI Ambitions with Climate Goals
The controversy comes at a sensitive moment for the EU, which is trying to balance two competing priorities: massive investment in cloud computing and AI infrastructure on the one hand, and legally binding climate and energy efficiency targets on the other. The European Commission is expected to present a dual strategy on 3 June, aiming to triple the bloc’s data centre capacity within five to seven years. According to a leaked draft seen by Euronews, the plan is intended to provide energy for artificial intelligence and data centres while using AI to optimise the energy system itself.
The EU executive argues that without rapid expansion, the bloc risks falling behind China and the United States in AI development, threatening its future industrial competitiveness. But for the MEPs, the secrecy around environmental data is “extremely worrying,” especially given that the rapid build-out of data centres across Europe is already putting strain on electricity grids and contributing to rising electricity prices. “AI workloads will increase electricity demand dramatically,” the letter notes.
Currently, there are roughly 3,000 data centres in Europe, including about 300 hyperscale facilities designed to handle growing AI workloads. The largest concentrations are in Ireland, Germany, the Netherlands, and the Nordic countries. These facilities are major consumers of electricity and water, and the prospect of many more popping up rapidly has raised serious concerns about grid pressure and environmental impact. While data centres do not create airborne pollution like factories, they contribute indirectly through carbon dioxide emissions from electricity demand, diesel backup generation, and construction. Large facilities also require huge cooling systems, which can lead to water stress during droughts or competition with local communities and farmers.
The MEPs’ letter also highlights a broader democratic problem in Brussels, where complex laws are often shaped with limited public visibility despite having significant environmental and economic consequences. The signatories argue that the influence of corporate lobbying reflects a systemic issue that undermines trust in EU institutions. For more on how EU policy disputes can stir tensions, see our coverage of Spain’s EU Fund Dispute Stirs North-South Tensions Ahead of Budget Talks.
As the Commission prepares to unveil its strategy, the MEPs are demanding that the contested provision be removed to ensure that the public can hold both the EU and tech companies accountable for the environmental costs of the digital transition. The outcome of this dispute will have implications not only for data centre regulation but also for the broader balance between technological ambition and environmental transparency in Europe.
