Germany eases heat-reuse rule to expand data centers and AI

According to Wired, the German government amended the Energy Efficiency Act before a requirement was due to take effect that would have required new data centers to reuse some of the heat they generate, preferably in municipal heating systems. Under the revised bill, which still needs ratification by the German parliament, companies will only have to assess whether heat reuse is economically and technically feasible; if it is not, they will be exempt.

The change follows a plan announced earlier this year to double Germany’s data center fleet by 2030 and quadruple the computing capacity available for running AI models, reducing dependence on the US. Developers said the original rule made new projects difficult, and state-owned Komm.ONE cited the law when withdrawing from a project in Baden-Württemberg; Stack Infrastructure also canceled a $3 billion facility in Hesse. Critics including Patrick Graichen accuse the government of prioritizing AI expansion over Europe’s climate goals.