Germany: Federal Government reaches agreement and decides to alleviate burdens for businesses and data centres
July 24, 2026
Germany: Federal Government reaches agreement and decides to alleviate burdens for businesses and data centresJuly 24, 2026 Why should I read this?On 24 June 2026, the German Federal Government (Bundeskabinett) adopted the draft “Act to Accelerate the Implementation of the Energy Efficiency Directive” (Entwurf eines Gesetzes zur Beschleunigung der Umsetzung der Energieeffizienzrichtlinie). The bill proposes significant amendments to the Energy Efficiency Act (Energieeffizienzgesetz, EnEfG) of 13 November 2023, namely to the rules governing data centres (Rechenzentren). It will bring substantial alleviations for building and operating data centres and also remove burdens from other businesses. Despite the name of the draft act, requirements for data centres pursuant to the EnEfG will still significantly exceed those of Directive 2023/1791 on energy efficiency. What do I need to know?Among various important changes provided by the draft, we would like to note the following:
These targets will be relaxed to 1.6 or lower for data centres operating before 1 July 2026, to be achieved by 1 July 2027, and to 1.4 or less by 1 July 2030. Data centres becoming operational from 1 July 2026 will still have to reach a PUE of no more than 1.2.
The draft will bring two changes to these exemptions. First, the "agreement" exemption (ground 2) will no longer be contingent on an investment plan and agreement on cost-sharing (Investitionsplan sowie Regelung zur Tragung der Kosten). The municipality or heating network operator will just have to declare its “concrete intention” to build or permit heat networks enabling compliance within ten years. Second, the operator will also be exempt if there is no technically and economically feasible connection to an existing or planned district heating network. This has to be demonstrated by a cost-benefit analysis as provided under new § 16(3) and (4). In any case, data centres will have to be built so as to provide sufficient space for future heat supply infrastructure.
when the operator plans or substantially modernizes the respective facility. Data centres whose waste heat is already being used for district heating, space heating, hot water, or other building purposes will be exempted. The cost-benefit analysis will have to comply with Annex XI of Directive 2023/1791. Open Questions
What should I do next?Data centre operators and investors in Germany should monitor the legislative process for potential further amendments in the parliamentary process and benefit from the opportunities which reduced regulatory burdens entail. Latest Insights
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