Germany has changed the mechanism by which its scarcest data centre input is allocated. For developers with genuine readiness, the reform is an advantage; for speculative positions, it is a filter.
The mechanism
Since 1 April 2026, 50Hertz, Amprion, TenneT and TransnetBW have allocated connection capacity for large consumers, including data centres, electrolysers and battery storage, through a maturity-based process, replacing first come, first served. Allocation runs in cycles: an application window of about three months with a non-refundable fee of €50,000 per application (the first closed on 30 June 2026), a cluster study phase of about five months where demand exceeds capacity, and a binding offer, accepted against a realisation security of €1,500 per MW credited to the construction contribution. Projects holding binding commitments under the previous regime retain them.
What is scored
Applications are scored on four criteria:
- Site control and permitting progress: 30%
- Technical maturity and feasibility of the connection: 30%
- Financial and organisational capability: 30%
- Grid and system benefits of shared connection points: 10%
The process rewards developers that control their land, have advanced permits and connection design, and can demonstrate capability to deliver.
Efficiency regulation on top
The Energy Efficiency Act adds facility-level requirements: a PUE of 1.2 for new data centres starting operation from July 2026, minimum waste-heat reuse rising from 10% to 20% for facilities starting from July 2028, and renewable electricity sourcing. A cabinet draft adopted in June 2026 would retain the 1.2 limit while allowing four years to achieve it on an annual average, count heat reused within the facility, link the reuse obligation to heat network availability, and move the 100% renewable deadline to 2030. The legislative process was ongoing at the time of writing.
Implications for origination
Three conclusions shape how we originate in Germany.
Readiness is the currency. Control, permitting and connection design determine access to capacity. The platform does not take speculative positions; its German facilities are transmission-connected or hold an agreed connection.
Co-location is rewarded. Sharing a connection point with generation or storage scores in the allocation and can bring capacity forward by years. This is why we structure projects jointly with power producers in Germany.
Efficiency drives siting. Heat reuse depends on proximity to heat users, so efficiency regulation now influences location as well as design.
The reform does not create grid capacity. It directs existing capacity to projects able to use it. For power-first developers, that is a structural advantage.
Sources
- From first come to first ready: Germany's new maturity-based grid connection process for BESS and large-scale consumers, Herbert Smith Freehills Kramer, 2026
- Update Rechenzentren: Gesetzentwurf zur Änderung des Energieeffizienzgesetzes liegt vor, Gleiss Lutz, 2026
- EnEfG im Rechenzentrum: Was Betreiber jetzt wissen müssen, TÜV Rheinland Consulting
Figures are as reported by the sources above at the time of writing. This article is for general information only and does not constitute an offer, solicitation or investment, legal or tax advice.
SVP Development and Chief Operating Officer, Qore Infrastructure Partners. Profile
