The H2020 InterConnect project aims to improve the semantic interoperability in the smart home, building and grid domain. The project has a budget of 35 million euro’s and gathers 50 European entities from 11 countries. An vital component for success is its interoperability layer, which allows platforms, services and devices (knowledge bases) from different vendors to exchange data. The interoperability layer was designed to utilize semantic technologies like ontologies and reasoning. InterConnect’s interoperability layer will be realized by the Knowledge Engine. The Knowledge Engine is a working prototype that is built on Semantic Web technology to harness the power of domain knowledge. It uses a generic component called the Smart Connector to realize intelligent data exchange. Every platform, service or device runs an instance of this Smart Connector and configures it with its capabilities. This resulting network of Smart Connectors can exploit these capabilities to orchestrate data exchange with the help of a rule reasoner that uses the capability descriptions to determine where data should come from or go to.