Germany Scales Back Data Center Heat Recycling Rules to Chase AI Growth

The German cabinet has approved a modification to its Energy Efficiency Act, eliminating the requirement for new data centers to repurpose waste heat, now only necessitating an evaluation of economic and technical viability. Previously, the 2023 law mandated that waste heat be recycled into municipal systems, a stipulation that data center companies claimed hindered construction in Germany. Following a revision of the rules in June, just a month before they were set to take effect, the updated legislation is now on its way to parliament. Patrick Graichen criticized the government for prioritizing AI goals over climate objectives. In the past 18 months, Stack Infrastructure scrapped a $3 billion project in Hesse, and Komm.ONE pulled out of a Baden-Württemberg initiative. Federal minister Katherina Reiche presented the amendment as a means to enhance digital sovereignty and foster growth.