Data center strategy adopted

19.03.2026

Source: E & M powernews

The German government has adopted a strategy for data centers in Berlin to manage expansion, energy supply and environmental standards.

The German government adopted its first strategy for data centers in Berlin on 18 March. The aim is to combine the expansion of digital infrastructure with requirements for energy efficiency, site selection and supply. According to Federal Environment Minister Carsten Schneider (SPD), the strategy is intended to combine economic and ecological aspects.

Schneider explained that Germany needs powerful and efficient data centers. New facilities should preferably be built where sufficient water and renewable energies are available. In addition, operators should feed their waste heat into heating networks so that local residents can benefit from it. "The German government wants to create suitable framework conditions for this," explained Schneider. The focus on efficiency and environmental protection could also strengthen the competitiveness of German companies, for example in technologies for water-saving cooling and waste heat recovery.

With this strategy, the German government is also pursuing the goal of strengthening Germany's digital sovereignty. Data centers are to play a similar role to the energy supply with which they are operated. Compared to previous drafts, the German government has specified the requirements for the power supply in particular. However, it remains unclear whether data centers will be included in electricity price compensation in future.

Associations welcome the strategy

The German Association of Energy and Water Industries (BDEW) sees the decision as an important step for the future viability of the location. BDEW Managing Director Kerstin Andreae explained that data centers are central to digitalization and the efficient use of the energy system.

However, adjustments to the allocation of grid connections are necessary for grid-friendly expansion. The current principle of sequencing applications is reaching its limits. Instead, the association is calling for transparent criteria and a maturity principle that gives preference to projects with a high probability of implementation.
BDEW is also calling for simplified and accelerated planning and approval procedures for grids and substations. Forward-looking grid and site planning is crucial in order to avoid bottlenecks. Suitable areas for data centers should be identified at an early stage and coordinated with the grid expansion. Water requirements must also be taken into account when choosing a location, as data centers are dependent on cooling.

More renewable electricity needed

The German Renewable Energy Federation (BEE) is more critical. Its President Ursula Heinen-Esser sees the expansion of computing capacities and their operation with renewable energies as the right approach. At the same time, she questions whether sufficient renewable electricity will be available to meet rising demand. The success of sustainable data centers depends on the expansion of renewable energies keeping pace with growth.

The BEE also refers to a passage in the strategy according to which companies could also consider fossil energy sources if grid capacities are limited. This could compromise the credibility of the sustainability targets. The association believes that the strategy should be geared more towards an integrated energy system. This includes practical regulations for the integration of energy production and consumption.

Author: Susanne Harmsen