Chapter 2: Environmental and Energy Regulations for Data Centers and AI Infrastructure
We recognize that the responsible and sustainable development of artificial intelligence requires not just technological innovation but also robust policy frameworks. Our policy initiatives are dedicated to ensuring that AI advances in harmony with environmental goals, guided by principles that prioritize sustainability, ethics, and social responsibility.
China
Renewable Energy Law of the People’s Republic of China (2005, amended 2009): Promotes renewable energy development, including grid integration and financial incentives. Section 3 outlines sustainable energy objectives, while Section 9 supports subsidies and investment for renewable energy adoption.
Regulation on the Administration of Pollutant Discharge Permits (2021): Requires industries, including data centers, to obtain pollutant discharge permits. Section 6 mandates self-monitoring of emissions, and Section 10 outlines penalties for non-compliance.
Environmental Protection Law of the People’s Republic of China (2014): Focuses on pollution control and compliance with environmental quality standards (Section 7). It mandates environmental impact assessments for new projects (Section 32) and clean production audits for existing facilities (Section 41).
Clean Production Promotion Law of the People’s Republic of China (2002, amended 2012): Encourages sustainable production practices and energy conservation (Section 6). Data centers must adopt clean production strategies, such as advanced cooling systems and waste reduction (Section 7).
Energy Conservation Law of the People’s Republic of China (1997, amended 2007, 2016): Establishes targets for energy efficiency in various industries. Data centers must meet energy efficiency standards by optimizing infrastructure and operations (Section 9).
European Union
Energy Efficiency Directive (EED): Article 6 sets binding energy efficiency targets for large consumers, including data centers. Article 8 mandates energy audits for large enterprises, and Article 17 supports funding for energy-efficient upgrades.
Draft Delegated Act (DDA): A proposed supplement to the EED that mandates energy reporting for data centers with a power demand of at least 500kW by May 2024. It includes technical requirements like Power Usage Effectiveness (PUE) and limits on energy consumption for servers and cooling systems (Annex III).
EU Green Public Procurement (GPP) Criteria: Encourages public authorities to prioritize energy-efficient and environmentally sustainable products. Data centers must use 100% renewable energy verified by EN 50600-4-3.
EU Code of Conduct on Data Centre Energy Efficiency: Provides best practices for monitoring and improving energy efficiency using metrics like PUE, Data Center Infrastructure Efficiency (DCIE), and Cooling Efficiency.
Digital Decade Policy Programme (DDDP): Aligns digital infrastructure with climate goals, emphasizing renewable energy use and sustainable design for data centers to achieve climate neutrality by 2030.
EU AI Act: Focuses on regulating AI systems, including environmental impact assessments. Article 27 mandates fundamental rights impact assessments, including energy consumption and carbon footprint. High-risk AI systems must meet energy efficiency standards (Article 43).
EU Green Deal: Includes the promotion of renewable energy (Directive 2018/2001), climate neutrality targets (European Climate Law 2021/1119), and a digital strategy (COM/2020/66) that integrates energy efficiency in data sharing and infrastructure.
Corporate Sustainability Reporting Directive (CSRD): Requires disclosure of energy consumption and environmental impacts, including GHG emissions and energy efficiency of AI algorithms (Sections 19-21).
Corporate Sustainability Due Diligence Directive (CSDDD): Obligates companies to assess and mitigate environmental impacts, supporting energy efficiency and climate neutrality goals by 2050 (Sections 3 and 5).
Carbon Border Adjustment Mechanism (CBAM): Imposes carbon pricing on imports to align with EU standards, preventing carbon leakage and ensuring fair competition (Sections 1-6).
United States
Clean Air Act (CAA): Regulates emissions from stationary and mobile sources. Data centers are included under emissions regulations but are not specifically mentioned.
Clean Water Act (CWA): Requires data centers to obtain permits (Section 402 NPDES) for discharging pollutants into water, setting discharge limits and monitoring requirements.
Resource Conservation and Recovery Act (RCRA): Focuses on hazardous and non-hazardous waste management, including e-waste from data centers (Subtitle C).
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA): Manages hazardous waste site cleanups. Data centers must report any hazardous substance releases as per Section 102.
Endangered Species Act (ESA): Requires environmental assessments for data center projects that could affect endangered species under the National Environmental Policy Act (NEPA).
Energy Regulations
Energy Policy Act of 2005: Promotes energy efficiency and sustainability for federal data centers (Sections 102, 107, 1253).
Energy Independence and Security Act of 2007: Sets energy intensity reduction targets and mandates energy-efficient standards for federal buildings, aiming for 100% fossil fuel reduction by 2030.
Federal Data Center Consolidation Initiative (FDCCI): Focuses on optimizing federal data centers through energy efficiency and reduced greenhouse gas emissions.
National AI Research Resource Task Force Act of 2020: Recommends sustainable AI development, with data centers required to meet energy efficiency standards.
Energy Star Program: Provides certification guidelines for energy-efficient data center operations, with performance metrics like Power Usage Effectiveness (PUE) and server power consumption thresholds.
Executive Orders
Executive Order 13834 (Efficient Federal Operations): Encourages energy-efficient technologies and mandates reductions in energy consumption and greenhouse gas emissions.
Executive Order 14008 (Tackling the Climate Crisis at Home and Abroad): Sets goals for a carbon-free power sector by 2035 and net-zero emissions by 2050, impacting data center energy sourcing and emissions reporting.
