Between Expansion Targets and Network Reality: Data Centre Connectivity Under Scrutiny

The demand for high-performance digital infrastructure is growing rapidly. At the same time, grid connection is increasingly becoming a decisive factor in the realisation of new data centre projects. Limited connection capacity, long planning periods and new concepts such as Flexible Connection Agreements (FCAs) present new challenges for operators, investors and grid operators alike.

In this eco interview, Daniel Marhewka, partner and Attorney-at-Law at Fieldfisher, examines the legal and regulatory framework for grid connection. The discussion focuses on how greater planning certainty can be achieved, what obstacles currently exist, and what steps need to be taken to ensure that the expansion of digital infrastructure and the transformation of the energy supply can be successfully integrated. He will speak as an expert at the eco Data Centre Legal Masterclass as part of the eco Data Centre Expert Summit on 10 June 2026 about the challenges of power supply and grid connection for data centres.

The expansion of digital infrastructure is increasingly dependent on power supply. Where do you currently see the greatest challenges in connecting new data centres to the grid in Germany?

Connection capacities in the German electricity grid are scarce and vary greatly from region to region; furthermore, connection times are often very long due to a lack of coordination between energy and site planning. In the case of data centres, there is also a lack of systematic joint planning of electricity and heating networks, although the heating aspect of data centres should not be overlooked.

The biggest challenge in planning data centres therefore currently lies in the availability of sufficient grid capacity at the right location and at the right time. Data centres are energy-intensive infrastructures with high demands on Supply Security, redundancy and scalability. Particularly in cluster regions, sharply rising connection requests are met by electricity grids that are not designed for this concentration of large loads. Added to this are long lead times for grid reinforcements, substations or upstream infrastructure. This is particularly critical for operators and investors, as guaranteed connection capacity is a key factor in site selection, financing, technical planning and the subsequent marketing of data centre capacity.

Here, the need for predictability in such large-scale projects – particularly regarding lead times for all components and services – clashes with grid connection commitments that are, in some cases, far too vague and with temporary grid connection reservations, which are insufficient given the complexity of planning a data centre.

Overall, there is a lack of a clear regulatory framework that sets out reliable structures for the grid connection of data centres.

Unclear connection capacities and times make investment difficult against the backdrop of long implementation times for data centres. How can operators and investors nevertheless create greater planning certainty?

Fundamentally, there should be a clear, transparent and predictable regulatory framework governing grid connection timelines and capacity. As predictability is central to large-scale projects such as data centres, such a regulatory framework would significantly accelerate growth.

However, this reliable regulatory framework is not yet in place. The German federal government’s data centre strategy of 18 March 2026 contains some important and positive starting points, but remains very vague and superficial; therefore, implementation will be key.

In the case of a connection at the extra-high-voltage level, the structure set out by the transmission system operators in the procedural documentation for the “maturity assessment procedure for grid connections” on 27 April 2026 provides an initial structural basis.

In fact, planners should already take the issue of available grid capacity into account during site planning for the data centre – not only after completing property or planning permission procedures. Operators should submit robust connection requests at an early stage, examine alternative grid connection points and define realistic load profiles as well as expansion phases. They should also test these load profiles against the technical specifications of the relevant grid operators.

What regulatory or procedural hurdles are currently making it particularly difficult to connect data centres to the grid?

A key hurdle is the lack of a legal basis for structuring and standardising the grid connection process. The transmission system operators’ maturity assessment procedure is a first step in this regard, but it is a self-imposed commitment – not a robust legal framework. It is important to establish binding criteria such as requirements for the grid connection application, processing times, technical specifications and contractual terms. These vary considerably depending on the grid operator and grid level. As a result, it is often difficult for operators and investors to predict when and which connection capacity will actually be available. Additionally, interfaces with construction, emissions control, energy efficiency and waste heat issues come into play. Today, data centres must not only be connected but also embedded within regulatory energy and sustainability frameworks. It is particularly difficult when connection capacities are offered only on a non-binding basis or for an insufficient period, or when it remains unclear whether and for how long capacities are reserved..

One issue that has not yet come into focus but is relevant for data centre developers or operators of multiple data centres concerns the integration of electricity supply into their own service offering – a model we certainly see repeatedly. This can quickly lead to providers themselves being classified as network operators, which, on the one hand, imposes significant obligations on them under the Energy Industry Act, but also often presents the business model with considerable challenges against the backdrop of unbundling requirements.

In the context of current discussions on flexible grid connection models and associated Flexible Connection Agreements (FCAs), the issue of controllable loads is coming increasingly into focus. How do you assess such models from a legal and practical perspective, given the availability requirements of data centres?

Flexible grid connection models and the associated Flexible Connection Agreements (FCAs) can be a building block for making limited grid connection capacity available more efficiently. However, they also create major challenges for the operation of data centres and must therefore be designed very carefully. This flexibility generally means that grid connection capacity is not always available and, unlike many industrial consumers, data centres cannot easily reduce their load at short notice, as they must fulfil high availability and service-level commitments to their customers. Therefore, if the FCA also imposes restrictions on the data centre – which will be the case in most arrangements – this must also be taken into account in contracts with the data centre’s customers and thus has a direct impact on the data centre’s profitability.

The market is currently discussing three main FCA models: static models with fixed power caps, time-based models with varying availability levels over time, and dynamic models where availability is regularly adjusted according to defined criteria. All three, as well as the associated templates currently available on the market, are of limited use to data centres. Data centres will require detailed, carefully balanced, individual special provisions to be negotiated with the other users of the grid connection and the grid operator.

What changes in planning, regulation or cooperation between grid operators and data centre operators would be necessary to implement grid connections more quickly and reliably in future?

From our consulting experience, the key criterion when it comes to planning grid connections is a reliable, predictable and clear process that the project developer can use as the basis for their development. The legislator must set the guidelines for this process; otherwise, the various grid operators will establish their own individual framework conditions and, where necessary, deviate from them in the event of bottlenecks. In practice, inconsistency makes it difficult for investors and operators to plan reliably.

A good first step was the commitment by all four transmission system operators to the maturity-based procedure for grid connections dated 27 April 2026, which replaces the previous system of prioritisation based on the date of application.

However, a clear legal framework for grid connection is now also needed for all other grid operators. Clearer procedures, more binding timetables and standardised regulations on connection commitments, capacity reservations, construction cost subsidies and flexible connection models would be beneficial.

The current, very rudimentary connection obligation in the law, with its very broad exceptions, does not provide the necessary guidelines for conducting effective discussions between grid operators and data centre developers/operators.

The national data centre strategy addresses this issue with four announced measures: enabling a revised allocation procedure for transmission system operators, improving allocation procedures – in particular, greater transparency regarding available grid connection capacity – industry standards for FCAs with the involvement of data centres, and EU-wide harmonised technical requirements for grid connection. However, the implementation of these guiding principles will be decisive.

Furthermore, in my view, digitising the reservation system via a platform would be of considerable help. At present, communication often breaks down due to the unavailability of grid operator staff.