Conference of Economic Ministers Must Act

Ahead of the Conference of Economic Ministers on 1 and 2 July in Konstanz, eco - Association of the Internet Industry - is calling for a clear commitment to the expansion of data centres, cloud, and AI infrastructure in Germany. Digital infrastructure forms the foundation for industrial competitiveness, digital public administration, research, SMEs, start-ups and technological sovereignty.

The amendment to the German Energy Efficiency Act (EnEfG), which was approved by the Federal Cabinet last week, will soon become a key test for Germany as a data centre location. The federal states now have an important role to play in the ongoing legislative process, particularly with regard to the forthcoming deliberations in the German Federal Council (Bundesrat). Efficiency, sustainability and the utilisation of waste heat are key objectives that also offer additional opportunities for Germany as a business location. It is crucial that the regulations are designed to be technically feasible, economically viable and compatible with the European regulatory framework. The Conference of Economic Ministers should advocate for the Energy Efficiency Act (EnEfG) to provide investment certainty for new and existing data centre projects and to support the expansion of modern, energy-efficient digital infrastructure in Germany.

The topics on the agenda for the Conference of Economic Ministers highlight what else is at stake: energy, grids, supply security, competitive electricity costs, land use and reducing red tape. It is precisely here that it will be decided whether Germany can retain digital value creation in the country and strengthen its position as a leading digital and industrial hub.

From eco's perspective, three clear strategic priorities are needed:

Firstly: Data centres must be systematically integrated into energy and grid planning. Anyone wishing to strengthen cloud, AI and digital applications in Germany must plan early for the necessary electricity and grid capacity. The federal states can accelerate progress through better coordination of site selection, forward-looking energy planning and harmonised approval processes. At the same time, the Conference of Economic Ministers should call on the German federal government and the German Federal Network Agency (BNetzA) to introduce more transparent, binding and practical grid connection procedures.

Secondly: Digital infrastructure requires competitive electricity costs and investment-friendly regulatory frameworks. Data centres are electricity-intensive, high-availability infrastructures and therefore a key location factor for the digital economy. They must be appropriately considered in future regulations governing grid charges, electricity prices and relief schemes. The federal states should advocate to the German federal government and the EU for state aid and energy law frameworks that support investment in data centres, cloud infrastructure, AI computing capacity and secure data infrastructure.

Thirdly: Federal states and municipalities must secure suitable land, facilitate new data centre developments and strengthen public acceptance. Data centres are built where electricity, fibre optic networks, heating networks, suitable sites, swift planning approvals and local authority support come together. The priority sites announced in the national data centre strategy provide an important foundation. The federal states, in particular, are well placed to coordinate electricity grids, fibre optic networks, heating infrastructure, commercial land and local planning more effectively, thereby creating better conditions for new data centre investments. This also includes establishing central points of contact for investment and site-selection matters, as envisaged at European level under the proposed Cloud and AI Development Act.

Public support for further expansion is already in place: a recent YouGov survey commissioned by the eco Alliance for the Strengthening of Digital Infrastructures in Germany shows that 60 per cent of respondents consider the further expansion of data centres in Germany to be important or very important. Support is also strong at the local level, with 50 per cent favouring additional data centre development in their own region. The federal states and municipalities should build on this positive public support through forward-looking site planning, transparent procedures, better integration with energy and heating networks, and early engagement with local communities.