The European Union is reportedly set to revise its proposed regulations governing datacentre emissions, offering operators greater flexibility in how they account for their carbon footprint. According to a leaked draft summary, the updated rules would allow datacentre operators to offset a larger share of their emissions by purchasing carbon credits from a wider range of schemes, rather than relying solely on direct reductions in energy use or renewable procurement.
The change has drawn sharp criticism from environmental campaigners and some industry observers, who argue that it could undermine the credibility of the bloc's climate targets. 'By loosening the link between actual energy consumption and offsetting, the EU risks creating a system where operators can pay for cheap credits instead of investing in efficiency or clean power,' said Dr Helena Finch, a climate policy researcher at the University of Cambridge. The draft reportedly does not specify a minimum share of emissions that must be cut directly on-site.
For UK businesses, the development highlights a growing regulatory divergence. While the EU is pursuing its own framework under the Energy Efficiency Directive and the AI Act—which includes specific reporting obligations for datacentres—the UK's Information Commissioner's Office (ICO) has yet to finalise equivalent rules. Many British firms with EU operations will need to comply with both regimes, potentially increasing administrative costs. 'UK datacentre operators already face pressure from investors and clients to demonstrate net-zero progress,' noted Simon Barrow, a technology analyst at London-based consultancy GreenGrid. 'If the EU weakens its standards, it could create a race to the bottom on environmental reporting.'
The proposed flexibility is likely to appeal to operators facing soaring energy costs and rising demand for AI computing power. Datacentres account for roughly 1-2% of global electricity use, a figure expected to climb as generative AI models require ever more intensive processing. Lobby groups for the sector have argued that strict, prescriptive rules could stifle innovation and slow the rollout of new capacity in Europe. The revised approach, they claim, allows operators to support a broader range of offset projects, including reforestation and methane capture, which may deliver faster climate benefits than waiting for grid decarbonisation.
However, the move has alarmed regulators and consumer groups who fear it could enable 'greenwashing'—where companies claim environmental virtue without making substantial changes. The UK's Competition and Markets Authority has already warned businesses against misleading environmental claims, and the ICO is expected to issue updated guidance on digital infrastructure sustainability later this year. 'The real test will be whether offset credits are genuinely additional and verifiable,' said Barrow. 'Without robust standards, the whole exercise risks becoming a cosmetic accounting trick.'
For now, the EU's proposed rewrite remains subject to negotiation among member states and the European Parliament. A final text is expected later in 2026. UK policymakers are watching closely, as the outcome could influence the design of domestic regulations and the competitiveness of British datacentres in attracting international clients who demand high environmental standards.