Sustainable data centres: ESG, compliance, and future-proofing for success
As data centres face increasing expectations around sustainability, regulatory compliance, and environmental responsibility, having a clear and effective ESG strategy is essential.
Data centre developers, owners, and operators who prioritise making their data centres more sustainable unlock a range of advantages, from reduced operational costs to enhanced protection against risk and increased attractiveness to tenants.
In this article, we’ll provide an overview of the key regulations to be aware of, look at how green building certifications are shaping sustainable data centre operations and increasing competitiveness, and offer practical advice about what you need to do to future-proof your data centre and stay ahead.
An overview of the key regulations impacting data centres
The key regulations impacting data centres are the Energy Efficiency Directive (EED) and the EU Taxonomy. Currently, they focus on reporting and disclosure rather than imposing specific targets. However, regulatory frameworks are evolving, and stricter requirements may be introduced in the coming years. To maintain compliance and support long-term sustainability, data centre operators should proactively assess their obligations and begin transitioning toward net-zero emissions.
Essential insights for data centre compliance
Energy Efficiency Directive (EED)
Under Article 12 of the EED, data centre operators must monitor and report the energy performance of their data centres, which will then be collected and published by a European database.
This includes tracking information and sustainability KPIs such as:
- Power usage effectiveness (PUE): A measure of how efficiently the data centre uses energy, specifically the ratio of total facility energy to the energy used by IT equipment.
- Share of renewable energy: The percentage of the data centre’s energy supply that is sourced from renewables, reflecting its contribution to decarbonisation.
- Waste heat reuse: Whether and how the facility captures and reuses waste heat, for example, through district heating networks or nearby industrial applications.
- Cooling efficiency: Metrics related to how effectively the data centre manages thermal loads and maintains temperature, often a significant source of energy use.
- Water usage: The volume and efficiency of water use, particularly in cooling processes, and its impact on local water resources.
For now, the EED only requires reporting and disclosure; there are no specific limits or targets that must be achieved for these KPIs. As decarbonisation deadlines draw closer, however, there’s a very real possibility that there will be consequences for non-compliance in the future.
This means it’s crucial to ensure you’re setting the right reporting structures and data hygiene in place now. While third-party verification is not required, it can provide valuable support in ensuring compliance.
EU Taxonomy
The EU Taxonomy serves as a framework for identifying environmentally sustainable economic activities. For data centres, it sets specific criteria to ensure alignment with the EU’s climate and sustainability objectives. While compliance remains voluntary, adherence to these standards is increasingly shaping investment decisions and regulatory expectations.
In addition to general sustainability requirements for new buildings (Article 7.1) and renovations (Article 7.2), specifically data centres must meet operational standards outlined in Article 8.1.
To align with the EU Taxonomy, operators must:
- Adhere to the Code of Conduct for Data Centre Energy Efficiency (CoC): Implement energy-saving best practices, such as efficient cooling systems, server optimisation, and regular energy performance reviews.
- Perform a Climate Risk Vulnerability Assessment (CRVA): Assess climate-related risks like flooding, overheating, and power disruptions, and develop strategies to increase resilience.
- Calculate the Global Warming Potential (GWP): Measure the total carbon impact of operations, including emissions from energy use, materials, and refrigerants, to guide reduction strategies.
- Implement sustainable water management plans: Optimise water use, especially in cooling systems, and ensure water discharge does not harm local ecosystems.
- Facilitate the transition to a circular economy: Promote resource efficiency by reusing, recycling, and responsibly disposing of IT and building materials.
As regulatory frameworks evolve, aligning with these sustainability principles will not only enhance compliance readiness but also strengthen investor confidence and operational resilience.
How green building certifications are shaping sustainable data centre operations
Many data centre operators aim to exceed compliance standards and are looking to green building certifications to enhance operational efficiency and sustainability and meet industry best practices.
The two most widely recognised green building certifications for data centres are LEED and BREEAM:
- LEED (Leadership in Energy and Environmental Design) was developed by the U.S. Green Building Council. It’s widely used in North America and worldwide, making it a strong choice for those with a global portfolio of assets. LEED certification focuses on reducing operational costs, enhancing energy efficiency, and increasing the sustainability of a building’s lifecycle.
- BREEAM (Building Research Establishment Environmental Assessment Methodology) was developed by the Building Research Establishment in the UK, and is widely used across the UK, Europe, and worldwide. It evaluates energy use, comfort, water, and materials, as well as environmental impacts such as health and wellbeing and pollution.
Although voluntary, by obtaining certifications such as LEED or BREEAM, data centre operators not only align their operations with the highest sustainability and ESG criteria but also signal their dedication to long-term environmental stewardship. These certifications go beyond the basic compliance required by regulations like the EU Taxonomy, offering a comprehensive framework for energy efficiency, waste reduction, resource management, and environmental protection.
Achieving such certifications can also enhance a company’s reputation, attract environmentally conscious investors and tenants, and improve operational performance, all of which contribute to long-term business resilience and success.
The benefits of green building certification for data centres include:
- Reduce environmental impact
- Lower operational costs
- Enhance investor and tenant appeal
- Improve risk management
- Increase access to green financing
- Benchmark global performance
- Enhance your corporate reputation
- Optimise operational efficiency
3 best practices for data centres to future-proof their ESG strategies
Proactively putting the right systems and strategies in place now can help you ensure compliance, enhance performance, and improve long-term resilience and sustainability for your data centre. Not sure where to start? Try these three best practices.
1. Streamline compliance with the right software
Keeping up with ESG reporting requirements can be time-consuming, especially as frameworks like the CSRD and EU Taxonomy continue to develop. Recent updates, such as the EU’s Omnibus Directive, aim to simplify reporting obligations, particularly for smaller entities. However, core disclosures, including Scope 1 and 2 emissions, remain a fundamental requirement.
Use a built-for-purpose ESG platform like Obi ESG to track your key data and streamline reporting, from energy use and carbon emissions to progress towards green building goals. Integrating existing systems into a centralised dashboard enables all stakeholders to input, monitor, and analyse information from one place, giving you a comprehensive overview of your asset.
For organisations reporting across multiple assets or jurisdictions, combining the correct software with tailored expert support can reduce complexity and ensure alignment with current and future reporting expectations. This doesn’t just simplify compliance—it supports better decision-making and keeps your ESG performance visible and actionable.
2. Take steps towards net zero
Achieving net zero may be a long-term goal, but progress starts with practical action today. Whether aiming for a green building certification or improving performance, reducing carbon emissions should be a core part of your ESG strategy.
Start by reviewing your energy sources and planning to transition towards 100% renewables, using on-site generation or power purchase agreements (PPAs) where possible. Then, track and benchmark your data centres’ energy performance individually and across your portfolio. This allows you to identify optimisation opportunities, such as improving cooling efficiency, airflow management, and water usage.
It’s also essential to consider both operational and embodied carbon, particularly when planning new builds or major refurbishments. While operational carbon relates to day-to-day energy use, embodied carbon accounts for emissions tied to materials and construction. Both must be addressed to deliver meaningful progress toward net zero.
These improvements deliver multiple benefits: reduced emissions, lower energy costs, and improved resilience to future regulations. Where feasible, applying EED principles from the outset can maximise these outcomes, particularly for new builds or major upgrades.
3. Support the local environment
Beyond energy and emissions, data centres also affect the local environment. Infrastructure demands, land use, and water consumption all contribute to the site’s broader impact. As biodiversity becomes a growing focus of ESG regulation, especially under the UN’s Kunming-Montreal Global Biodiversity Framework, integrating nature-based strategies into your operations is an opportunity to lead.
Simple actions like planting native vegetation, restoring habitats, or implementing rainwater recycling systems can reduce your site’s environmental impact while enhancing climate resilience. These projects are increasingly recognised as ESG value-adds, contributing to local ecosystems and corporate sustainability goals.
With biodiversity set to become a key ESG trend in 2025 and beyond, early action protects the environment, positions your organisation to meet emerging expectations, and demonstrates leadership.
Sustainable data centres for sustainable futures
Data centres have unique and specific requirements. As they continue to be a vital part of our economic and digital infrastructure, it’s essential that operators, owners, and investors put the right strategies in place to protect the environment and their assets.
With legislation likely to evolve as we approach global decarbonisation milestones, meeting the bare minimum compliance requirements won’t be enough to stay competitive. Implement these ESG strategies today to reduce operational costs, appeal to investors, and improve sustainability.
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