RWE Close to Finalizing Two Data Center Deals

German energy company RWE is nearing agreements on two data center development projects. Speaking during the company’s Q2 earnings call, CEO Markus Krebber said two sites are expected to reach agreements within the next month, without providing further details. Krebber said more information would be released once the deals are signed and suggested they could be the first of several similar agreements.

“We now see the need to build what I like to call operational data centers in Europe, not to train the models, but which you need to have close to your customers to solve the latency problems,” he said. "They are coming, and big time. It’s just a question of time. So we do one step after another, we don’t want to rush into it.”

Krebber also said RWE has more Power Purchase Agreements (PPAs) in the pipeline with data center operators, noting that tech companies typically seek renewable power when developing new facilities. He added that data centers are contributing to rising power demand in Europe and the US. RWE plans to invest €42 billion ($48.4 billion) between 2026 and 2031 across renewables, flexible generation, and grid infrastructure. The company already has PPA agreements with major hyperscalers including Meta, AWS, and Google. "We own ​30 sites with good electricity infrastructure. That is a ​real asset. They are ​suitable not only for new ‌gas-fired ⁠power plants or batteries, but also for data centers," he added.