Why Germany Needs More Data Centers

Digital Sovereignty Begins with Infrastructure

Digitalization in Germany is advancing, but it requires a solid foundation. This foundation is the IT infrastructure. Data centers form the backbone of our digital economy. Yet, despite growing digital dependencies, Germany lags behind in expanding its data center infrastructure. This is not only an economic risk but also a sovereignty issue.

The Growing Demand: Data Explodes, Infrastructure Stagnates

Cloud applications, AI models, connected production facilities, and data-driven business processes generate immense amounts of data daily. According to Bitkom, the data volume in Germany grows by more than 30% annually. At the same time, the requirements for availability, security, and latency are increasing.

A future-proof digital ecosystem needs powerful, regionally distributed data centers—especially if Edge Computing, 5G, and IoT are to be more than just buzzwords. Today, it is mainly international hyperscalers providing computing power—with data centers outside Europe. But this endangers:

• Data protection & GDPR compliance
• Digital independence from non-European providers
• Resilience of critical infrastructures

Energy-efficient, Sustainable, European: Next-Generation Data Centers

Modern data centers in Germany could fulfill several strategic goals:

Forward-looking concepts like Micro-DCs, modular edge data centers, or data centers on former industrial sites show that infrastructure does not always have to mean concrete jungles—on the contrary: With intelligent planning, energy consumption, site selection, and network connectivity can be optimally combined.

Germany’s Location Advantage: Untapped Potential

Germany has many advantages: political stability, strong industry, central location in Europe. Nevertheless, the share of German data centers in the European total volume is disproportionately low. Especially in structurally weak regions, new data centers could not only improve digital supply but also provide economic stimuli—through new jobs, local value creation, and infrastructure investments.

Recommendations for Action for Politics and Business

To sustainably expand the data center ecosystem in Germany, the following are needed:

1. Support programs for medium-sized and municipal operators
2. Faster approval procedures and clear regulations
3. Incentives for energy efficiency and sustainable architecture
4. Digital regional strategies at federal, state, and municipal levels
5. Development of a sovereign cloud and hosting market

Conclusion: Infrastructure is Not a Nice-to-have, but a Must

Without strong data centers, there is no digital sovereignty. Germany must invest more—not only in technology but also in frameworks and strategies. Those who want a digital future must build the data centers today that can support it.