Germany walks back mandatory data center heat-recycling law after $3B

Germany walks back mandatory data center heat-recycling law after $3B and $2.5B AI server projects stall over climate rules

Germany planned to double its data center capacity and quadruple AI compute by 2030 to reduce US reliance, while EU states committed to cutting emissions by 55%. Those goals collided over the 2023 Energy Efficiency Act, which required server farms to funnel waste heat into municipal networks.

Over the past 18 months, Stack Infrastructure canceled a $3 billion facility in Hesse and state-owned Komm.ONE exited Baden-Württemberg over the law when towns lacked heating pipes. In June, 1 month before enforcement, Berlin softened the bill so operators only assess whether reuse is feasible.

Former energy official Patrick Graichen accused the government of sacrificing climate targets for the AI wave, while Carbon3IT director John Booth said the tech is well known. Meanwhile, local opposition grew after a German town council voted in February to block a $2.5 billion data center.