• RWE says two data centre sites are nearing agreement, with details expected when the contracts are signed
  • CEO Markus Krebber says the company owns 30 sites with electricity infrastructure that could also support data centres

The fact

German energy company RWE says two data centre sites are close to commercial agreements. CEO Markus Krebber told investors during the company’s second-quarter earnings call that agreements could be reached within the next month, but did not identify the locations, customers, planned capacity or commercial terms. He said further details would be disclosed once the agreements are signed.

Krebber said RWE owns 30 sites with electricity infrastructure that could also be used for data centres, gas-fired generation or batteries. He also said the company has further power-purchase agreements in the pipeline with data centre customers. RWE already supplies electricity to major technology companies through PPAs.

The assessment

RWE’s existing relationships with large technology companies have largely centred on supplying electricity through power-purchase agreements. The site programme could move the company into an earlier stage of data centre development. Instead of supplying power after a customer has chosen a location, RWE can offer sites that already have electricity infrastructure.

What RWE is actually providing through the two agreements is not yet clear. The company has not said whether they include land, grid access, power supply, site preparation or a combination of these. It has also not disclosed who would secure any remaining approvals, build the data centres or operate them. A site with electricity infrastructure is therefore a starting point for development, not an operating data centre.

For BTW readers, the 30 sites should be viewed as potential development locations rather than deliverable data centre capacity. The first signed agreements will show which parts of site development RWE is taking responsibility for and which remain with the customer.

What to watch

The first signed agreements should identify the sites, customers, planned capacity and the infrastructure RWE will provide. They should also clarify who is responsible for approvals, construction and operation. Similar terms in later agreements across other RWE sites would show whether the company is developing a repeatable approach to data centre projects.