Frankfurt Data Center Market Size (2024 - 2029)

Frankfurt Data Center Market Analysis

The Frankfurt Data Center Market size in terms of installed base is expected to grow from 1.22 Thousand megawatt in 2024 to 1.96 Thousand megawatt by 2030, at a CAGR of 6.78% during the forecast period (2024-2030).

• The main drivers anticipated to drive the market expansion are the increasing demand for energy-efficient data centers, considerable investment by colocation service and managed service providers, and expanding hyperscale data center building. Additionally, the development of big data, cloud computing, and the Internet of Things (IoT) has made it possible for businesses to invest in new data centers to preserve business continuity. Additionally, industrial development is expected to prosper due to the rising need for security, operational efficiency, improved mobility, and bandwidth. Software-based data centers boost industry growth by providing a higher level of automation.
• Frankfurt has undergone significant economic growth, becoming a financial and commercial center in Germany and then throughout Europe. The city's significance as the most significant financial center on the European mainland is highlighted by the presence of the European Central Bank, the German Stock Exchange, the German Central Bank, hundreds of commercial banks, and branches of foreign central banks. The city's digital transition has been accelerated by all of these financial institutions driving the data center demand in the country.
• The outbreak of the COVID-19 pandemic affected data center construction in the market studied as it has delayed the construction of several new facilities. Ongoing construction from enterprises and colocation service providers witnessed a halt. Projects pipeline with openings across Q4 2020 and Q1 2021 are majorly affected. The same has been attributed to data center infrastructure-related supply chain disruptions. With problematic imports already in place, the situation worsened as many vendors are dependent on importing IT and power and cooling infrastructure solutions.
• The increased demand from logistics, healthcare, e-commerce, and manufacturing sectors has attracted several cloud and colocation service providers to invest and expand their presence in the country. For instance, recently, Worldstream, a global IaaS services provider with company-owned data centers in the Netherlands and more than 15,000 dedicated servers installed announced the expansion of its presence across Europe with the deployment of a new data center in maincubes' FRA01 facility in Frankfurt, Germany. It includes the installation of a new Point-of-Presence for Worldstream's10Tbit/s global network. It allows Worldstream to offer a private cloud, dedicated servers, block and object storage, DDoS protection, colocation, and other IaaS services from Frankfurt.
• Moreover, to meet the rising demands of the customer, the firms are constructing new data centers in the region. For instance, in February 2022, The second stage of construction of one of Vantage's data center complexes in Frankfurt, Germany, has been revealed. On its 55MW EU campus (FRA1) in Offenbach, the business announced it would erect the second of three buildings there. When fully constructed, the plant would have a 16MW capacity and be 13,000 square meters (140,000 square feet) in size. It will begin serving customers in the first half of 2024.
• While the basic prices for electricity are similar across Europe, the electricity costs of German data centers are over six times higher than those of their European competitors due to taxes, charges, and network fees. Electricity accounts for approximately 50% of the operating costs of German data centers, which weakens the competitiveness of German data centers immensely. According to DgtlInfra (Digital Infrastructure), In 2020, the power supply of the existing data centers in Frankfurt, Germany, was 425 Megawatts, compared to Amsterdam at 390 Megawatts and Paris at 210 Megawatts, with leases to Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, among others.

Frankfurt Data Center Industry Segmentation

A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.

The Frankfurt Data Center Market is segmented by DC Size (Small, Medium, Large, Massive, Mega), by Tier Type (Tier 1&2, Tier 3, Tier 4), by Absorption (Utilized (Colocation Type (Retail, Wholescale, Hyperscale), End User ( Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce)) , Non-Utilized).

The market sizes and forecasts are provided in terms of volume (MW) for all the above segments.