Germany: Federal Government reaches agreement and decides to alleviate burdens for businesses and data centres

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:

• New definition of "data centre":  Under the current § 3 No. 24 EnEfG, data centre means a structure or group of structures for housing, connecting, and operating IT equipment with a non-redundant nominal electrical connection capacity (nicht redundante elektrische Nennanschlussleistung) of at least 300 kW.  The draft, § 2 No. 18, referring to Annex A No. 2.6.3.1.16 of Regulation (EC) No. 1099/2008, raises the threshold to an installed IT capacity (elektrische Leistung der installierten Informationstechnik) of 500 kW or more.  Thus, some smaller data centres may no longer be captured by the EnEfG.
• Lower energy use effectiveness (PUE) Targets:  Under the current § 11(1) EnEfG, data centres operating before 1 July 2026 must achieve a PUE of no higher than 1.5 by 1 July 2027, and lower or equal 1.3 by 1 July 2030.

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.

• Extended ramp-up:  § 11(2) requires data centres becoming operational 1 July 2026 or later to achieve the energy efficiency and reused energy targets within two years of commissioning (Inbetriebnahme).  The draft will extend this period to four years.
• Alleviations for reused energy targets:  The current EnEfG, § 11(2), requires data centres becoming operational 1 July 2026 or later to meet minimum thresholds of 10%, 15%, or 20% for reused energy, depending on their commissioning date.  The draft makes use of heat by the operator itself, e. g. heating its office and its working areas, creditable toward the reused energy requirement.  It also allows to undershoot the reused energy threshold to the extent the data centre is connected to a district heating network (Wärmenetz).
• Exceptions from reused energy requirements: § 11(3) now exempts data centre operators from the reused energy targets if (1) post-commissioning events beyond the operator's control prevent compliance, (2) there is an agreement with a local municipality or district heating operator on use of waste heat, or (3) the operator of a nearby heating network does not accept an offer of reused energy at cost within six months.

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.

• Delayed renewable energy target: Pursuant to current § 11(5), data centres must cover 50% of their electricity consumption from renewables from 1 January 2024, and 100% from 1 January 2027. The deadline for achieving 100% renewable electricity will be pushed back to 1 January 2030.
• Protection of confidential Information:  The obligation under present § 13(1) that data centre operators publish and transmit certain information by 31 March each year will be qualified: There will be no  publication of information subject to EU or national trade secret and confidentiality protections.  Information reported must be treated confidentially with regard to trade secrets and may only be disclosed to third parties if it has been aggregated and anonymized.
• Use of waste heat:  The current § 16 imposes businesses a general obligation to avoid or, if it is unavoidable, to use waste heat.  The draft will instead require a dedicated cost-benefit analysis
• for data centres with a nominal total energy input exceeding 1 MW,
• for energy supply facilities with such input of more than 7 MW and
• for manufacturing businesses with such input of more than 8 MW,

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

• Legislative timeline: As a Kabinettsbeschluss, the draft must still pass the parliamentary process in the Bundestag and Bundesrat.  While this may bring amendments, the vote in the Federal Government suggests that the compromise now found will not be unpacked in substance.  The parliamentary process is likely to take until September or October 2026.
• Shortcomings of the draft: Earlier proposals to make PUE and reused energy requirements contingent on utilization of a data centre, or to make them an issue for construction and not for operation, have not become part of the draft.  The definition of “operator” – owner of the building or of the co-location areas or holding “equivalent” rights for use – is unclear in several cases and will not be modified.

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.