Germany Prioritizes Networks, Ignores Power Costs

By Elke Porter | Westcoast German News | June 26, 2025
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Berlin, June 26, 2025 — Germany is set to take a significant step toward enhancing its digital infrastructure as the Bundestag prepares to pass legislation declaring broadband and telecom network expansion a matter of “overriding public interest.” However, the country’s leading digital industry association, Bitkom, has issued a stark warning: without corresponding relief on energy costs, the legislation may fall short of its intended impact.

Dr. Ralf Wintergerst, President of Bitkom, welcomed the symbolic weight of the move but criticized the federal government’s failure to include telecommunications networks and data centers in upcoming energy tax relief measures. “Rechenzentren werden im internationalen Wettbewerb massiv benachteiligt,” (Data centers are being severely disadvantaged in international competition.) he said, emphasizing that data centers are critical to Germany’s digital future, yet face soaring energy costs unmatched across Europe.

The legislative shift—championed by Germany’s ruling coalition of the Social Democrats (SPD) and the Christian Democratic Union (CDU)—is aimed at accelerating the deployment of gigabit networks, especially in rural and underserved areas. The law would enable telecom providers to overcome existing regulatory hurdles, particularly those stemming from environmental and heritage protections, which have historically delayed infrastructure projects.

Under the new framework, telecom providers must meet stringent federal targets: by 2030, all three major network operators must deliver at least 50 Mbit/s coverage to 99.5% of Germany’s land area. This includes hard-to-reach mountain regions, coastal zones, and vast stretches of protected nature reserves, which currently account for over a third of the country’s territory.

Despite investing nearly €30 billion over the past two years in network expansion, telecom firms remain encumbered by complex permitting processes and burdensome bureaucracy. Bitkom urges that the upcoming amendment to the Telecommunications Act (TKG) address these barriers by streamlining approvals and standardizing procedures through digital tools.

“Declaring network expansion a public priority is only the beginning,” said Wintergerst. “Without affordable power and regulatory reform, Germany’s digital ambitions will remain stuck in the slow lane.”

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