- Shortly before the launch of the Tech Sovereignty Package, the Alliance warns that Europe must not undermine the expansion of data centres through new regulations.
- Efficiency and location requirements that are out of touch with reality do not create digital sovereignty, but rather new investment risks.
- What is crucial now is faster approvals, predictable grid connections and a labelling system that takes local realities into account.
Berlin, 1 June 2026 – The Alliance for the Strengthening of Digital Infrastructures in Germany, founded under the umbrella of eco – Association of the Internet Industry, has warned ahead of the expected publication of the European Tech Sovereignty Package on Wednesday against regulatory missteps in the expansion of data centres. In the Alliance’s view, the European Commission’s objective of tripling data centre capacity across the EU by 2032 can only be achieved if new initiatives are carefully coordinated and facilitate investment, rather than creating additional hurdles for the expansion of digital infrastructure.
“Europe must strengthen its infrastructural foundation for digital sovereignty and create the right framework conditions to achieve this,” says Volker Ludwig, spokesperson for the Alliance for the Strengthening of Digital Infrastructures in Germany. “If impractical efficiency targets, de facto location requirements and thus additional investment risks are introduced prematurely, even before a uniform labelling system has been introduced and tested, the goal of tripling AI and data centre capacities will not be achieved. In that case, Europe will create transparency and efficiency on paper, but no additional capacity in the market.”
The Alliance fundamentally supports greater transparency regarding energy efficiency, water consumption and the use of renewable energy. Key performance indicators such as Power Usage Effectiveness, Water Usage Effectiveness and Renewable Energy Factor can contribute to comparability and sustainability. However, this requires clearly harmonised definitions, standardised calculation methods and a realistic reflection of regional differences. Climatic conditions, available grid capacity, water availability and local infrastructure are decisive factors in determining which efficiency figures are technically and economically achievable at a given location. In practice, it will therefore quickly become apparent that a one-size-fits-all solution is counterproductive.
“A label that ignores local realities will not improve sustainability, but will lead to market distortions,” says Ludwig. “Data centres in warmer regions or in areas with more challenging infrastructure must not be disadvantaged by simplistic metrics. Europe needs a labelling system that promotes transparency, not a simplistic traffic-light scheme that discourages investment in urgently needed digital infrastructure.”
The Alliance is particularly critical of potential requirements for electricity procurement metrics. A de facto obligation to provide time- and location-specific guarantees of origin with very high granularity would be difficult to implement, given the currently limited market availability of such certificates. It could significantly increase procurement costs, strain the liquidity of renewable energy markets and create additional regulatory complexity. From the Alliance’s perspective, requirements for guarantees of origin must remain consistent with RED III.
Nor should waste heat utilisation and grid services be subject to blanket obligations. Both aspects are important, but highly location-dependent and, in the case of grid services, also dependent on the business model. Whether waste heat can actually be utilised depends on heating networks, consumers, technical feasibility and local economic viability. Likewise, data centres are designed for continuous, uninterrupted operation and cannot arbitrarily shift workloads without jeopardising service quality or contractual commitments; this applies in particular to colocation data centres.
“Anyone who gradually turns voluntary metrics into de facto obligations shifts the debate from expansion to prevention,” says Ludwig. “Sustainable development needs workable rules. It does not need regulations that hold operators responsible for infrastructure beyond their control.”
The key bottleneck for new data centre capacity remains timely and predictable access to energy and grid connections. Lengthy approval procedures, a lack of suitable sites, unclear waste heat requirements and additional reporting obligations further undermine investment certainty. In Germany, planning and approval processes for data centres – including urban land-use planning and environmental permits – can take several years. For international investors, this sends a very negative signal about the location.
The Alliance therefore calls for legislation to focus on practical implementation: faster permitting, prioritised grid connections for strategically important digital infrastructure, designated suitable sites, and a technology-neutral, evidence-based and uniform labelling system across Europe. Minimum standards and new thresholds should only be discussed once sufficient reliable operational data from the European reporting system is available.
“The crucial question is not whether Europe needs more digital infrastructure. The real question is whether Europe is willing to enable it,” says Ludwig. “If the Tech Sovereignty Package treats data centres primarily as a regulatory issue, Europe will not strengthen its digital sovereignty. Then the AI and cloud capacities we need will be created elsewhere.”
About the Alliance for the Strengthening of Digital Infrastructures in Germany
The Alliance for the Strengthening of Digital Infrastructures in Germany is an association of leading companies in the industry. Founded in 2018 under the umbrella of eco – Association of the Internet Industry, the initiative aims to draw attention to the importance of digital infrastructures for Germany as a business location through dialogue with policymakers and the public.
