The Energy Lobby Pushes the Data Center Industry to a Standstill

Just don't move - the data center industry in front of the cart of the energy lobby

The federal government’s proposed legislation to increase energy efficiency in data centers and promote the use of waste heat is facing resistance from the data center and energy industry. The plan aims to align data centers in Germany with ecological sustainability and climate protection by using waste heat. New data centers must be operated in a climate-neutral manner by 2027, and public data centers will introduce an environmental management system by 2025.

However, skepticism surrounds the seriousness of these promises and declarations of intent, particularly when it comes to climate protection. The implementation of the legislation, called the Act to Increase Energy Efficiency and Amend the Energy Services Act (EnEfG), has faced opposition from data center operators and energy service providers.

The draft bill for the EnEfG makes it clear that the law will not only affect data center operators but also energy service providers. The use of waste heat has been a contentious point in the legislation. The initial draft called for data centers starting operations from January 1, 2025, to have a planned share of reused energy of at least 30% in their first two years, and those starting operations from January 1, 2027, to have at least 40%. However, in the second draft, the deadlines were pushed back and the required amount of waste heat use was reduced.

Lobbyists and industry representatives argue against the use of waste heat, claiming that there are no heat networks for it. They also present excuses such as the heating only running in winter, while data centers operate year-round. However, there are alternatives, such as adsorption chillers, which can generate cold from the heat and can be used to cool data centers in summer. The temperature difference is another point of contention, with some claiming that data center waste heat is too cold for heating. However, water cooling and server-side cooling solutions can effectively dissipate heat at higher temperatures. Despite the resistance, these techniques are already widely used in the industry.

In conclusion, the proposed legislation to increase energy efficiency in data centers and promote the use of waste heat is facing opposition from the data center and energy industry. Lobbyists and industry representatives argue against the use of waste heat, but alternative solutions, such as water cooling and server-side cooling, can effectively dissipate heat at higher temperatures. Despite the resistance, these techniques are already widely used in the industry and can contribute to energy efficiency.

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