We need to replace an existing electric hot water heater with one the same size.

36 KW, 3 phase 208 volts.
Label states it draws 82 amps.
The breaker in the panel is 125 amps.
Fed with 1/0 copper.
This is what the instructions state.

There is an existing 200 amp disco in the same room as the heater.

Question is can I use a 100 amp disco or would that be a violation?

The problem is that the new water heater is the same KW as the old one but has more capicity and is physically bigger. It intrudes on the working space for the disco and a smaller disco might do the trick. The old water heater also intruded on the working space for the disco but not as much.

I was also thinking of tossing the disco, the panel breaker is actually 5 feet away in the room next door. Would that be "within sight"? It is a different room with its own door but is right next to the hot water heater room. Both are rather small closet sized about 5 X 5 feet.