The European Union is considering a regulatory draft that would relax earlier, stricter proposals on how data centres must account for their climate impacts. According to a Financial Times report, the draft would allow companies to offset emissions from gas-powered data centres using cheaper measures such as the purchase of renewable energy certificates.
What would change compared with the earlier proposal?
The March version of the proposal was tighter: it required that emissions from fossil fuels be offset only with renewable certificates originating from projects established in the past ten years and producing energy in the same time frame and geographic area as the data centre. The June 30 draft, however, contains concessions: it permits lower-cost compensation methods and accepts certificates based on nuclear generation as well.
Who influenced the text?
The revisions reflect lobbying by corporate and industry groups. Amazon Web Services, Microsoft and the European Data Centre Association were among those pressing for looser requirements, citing higher costs and implementation challenges. Allowing nuclear-backed certificates particularly benefits member states that rely on atomic power, such as France.
Why critics are concerned
Experts warn that certificate-based offsets do not necessarily deliver real emissions reductions. Killian Daly, head of the EnergyTag think-tank, noted that unless data-centre operations are powered by new, local and real-time renewable generation matched to consumption, demand for imported gas could rise — with consequences of higher energy prices and weaker supply security.
Technology firms have for years claimed they can neutralise emissions through renewable energy investments, but recent company disclosures complicate that narrative: Amazon reported on Wednesday that emissions associated with its purchased electricity rose by 34 percent between 2024 and 2025, while Google’s equivalent figure increased by 37 percent.
Why this matters for Europe
Europe is the world’s second-largest data-centre market after North America, and is also among the fastest-warming continents. Plans foresee roughly tripling data-centre compute capacity within the next five to seven years, which would substantially increase the sector’s energy needs and climate impact. The regulatory loosening therefore has implications for energy supply, climate policy and security of supply across the continent.
Related context
As a side note, the Portfolio Sustainable World 2026 conference on September 8 will address current business sustainability issues; the event illustrates the broader public and industry debate around such regulatory decisions.
In sum, the June 30 draft eases previously proposed requirements under pressure from major tech companies and trade groups, but critics say the changes risk delaying genuine emissions reductions and could increase vulnerability in Europe’s energy system.
