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Germany is falling behind in the data center sector, according to Bitkom. While leaders USA and China are making significant strides in expanding their capacities, Germany’s share of the global market is declining.
Cloud and AI data centers are key drivers of growth and essential for the successful transformation of economies and public administrations. Building and expanding one’s own data center capacities is therefore crucial for the success of entire economies. However, Germany’s share of the global data center market is decreasing, as a new Bitkom study reveals.
According to the study, in 2023, Germany’s share of the worldwide installed capacity was still at 3.5 percent. Currently, with 2.7 gigawatts, it stands at just 2.5 percent, and by 2030, it is expected to further decline to 2.5 percent with an additional capacity of 4.8 GW. While data center capacities in Germany are indeed growing, other countries are setting a much faster pace. The USA, for instance, is expected to significantly enhance its lead by nearly doubling its gigawatt capacity from 48 GW to 95 GW by 2030.
Slow processes and regulations hinder expansion
Bitkom criticizes that in Germany, in addition to environmental concerns, too many lengthy approval and planning processes are preventing further expansion. The industry association therefore demands an “Action Plan Data Centers” with the presentation of the new study to make Germany a more attractive location for data center operators.
“Data centers are the backbone of digitalization. Hardly any business or private household can do without the services of data centers, and public administration is no longer functional without them,” emphasizes Bitkom Managing Director Bernhard Rohleder. “In the USA, two to three times as many capacities are newly built each year as are installed in Germany. It is high time to take countermeasures. Without data centers, no digital sovereignty. As the third-largest economy in the world, we cannot afford to fall behind but must keep pace with the leading nations.”
Germany must become more capable of action, more resilient, and more technology-oriented – and that is only possible with a strong and powerful IT infrastructure.
Ireland and China Lead in Data Center Capacity per GDP
Within Europe, Germany still has the highest share of data center (RZ) capacities, but the current investments of 2.9 billion euros in buildings and building technology, as well as 10 billion euros in IT hardware, are relatively low compared to its economic performance. The following figures are based on the gross domestic product (GDP) in billions of euros. On this basis, Germany achieves a data center connection capacity of 610 kilowatts, compared to 670 kW in the United Kingdom, 930 kW in the Netherlands, and 2,130 kW in Ireland.
The Emerald Isle ranks at the top globally in data center computing power per GDP due to the numerous tech companies that maintain and invest in local operations. In second place is China with 2,100 kW, followed by the USA in third with 1,700 kW of connection capacity per GDP in billions of euros. While China’s capacities are growing at a similar rate to Europe – around 70 percent – the starting point is vastly different, with China at 38 GW compared to Europe’s 16 GW. This means that by 2030, China’s server capacity is projected to reach 64 GW, while Europe’s will only increase to 28 GW. These are the figures and forecasts presented by Bitkom and calculated by the Borderstep Institute.
Cloud Drives Growth
Growth drivers for data center capacities are cloud data centers. Their capacities in Germany have nearly doubled from 630 to 1,240 megawatts between 2019 and 2024. Their market share has sharply increased from 29 to 45 percent.The market for edge data centers is also progressing, albeit on a smaller scale, with a connection capacity of 180 MW. However, traditional data centers are showing a downward trend. Today, the 100 largest data centers in Germany account for nearly half of the total installed base of 2,730 MW in the country, with a 48 percent share. In this dynamic and demanding environment, Axians supports companies with tailored solutions for cloud and data center infrastructures.Through innovative technologies, comprehensive consulting, and close partnerships with leading providers, Axians lays the foundation for scalable and efficient IT landscapes that meet the increasing demands of modern data centers. Learn more here.
Source of title image: Adobe Stock / raja