Germany Data Center Construction Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 6.70 Billion |
| Market Size (2030) | USD 11.06 Billion |
| CAGR (2024 - 2030) | 8.73 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Germany Data Center Construction Market Analysis
The Germany Data Center Construction Market size is estimated at USD 6.70 billion in 2024, and is expected to reach USD 11.06 billion by 2030, growing at a CAGR of 8.73% during the forecast period (2024-2030).
- Under Construction IT Load Capacity: The upcoming IT load capacity of the German data center construction market is expected to reach more than 2400 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by more than 11.8 thousand sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach more than 590 thousand units by 2030. Moscow is expected to house the maximum number of racks by 2030.
- Planned Submarine Cables: Close to 7 submarine cable systems are connecting Germany, and many are under construction.
Germany Data Center Construction Market Trends
Tier 3 Data Centers were Expected to Record Significant Market Share in 2023
- The data center construction market in Germany is experiencing consistent growth. This trend is compelling service providers to adhere to tier 3 standards, resulting in the proliferation of tier 3 colocation facilities nationwide. Presently, Germany boasts over 60 tier 3 data centers, with a concentration in key cities like Frankfurt, Berlin, Dusseldorf, Munich, and Hamburg.
- Frankfurt boasts the highest concentration of tier 3 data centers in Germany. Tier 3 data centers are favored by major enterprises for their advanced features and cost-effectiveness. These facilities offer robust disaster recovery solutions and cutting-edge firefighting systems, bolstering data security for clients.
- As companies increasingly adopt new devices and leverage 5G networks for optimal performance, they are gravitating toward data centers that ensure uninterrupted computing services. Tier 3 data centers, boasting a 99.98% uptime and N+1 redundancies, emerge as the top choice for a majority of businesses.
- Businesses highly prefer these data centers due to factors like experiencing only 1.6 hours of downtime annually and offering 72 hours of power outage protection. With the rise of smart cities, surging user appetite for streaming content, expanding online shopping and digital payments, a growing number of smartphone users, and the popularity of online gaming, data consumption is set to surge, further fueling the demand for tier 3 data centers in Germany.
The IT and Telecommunications Segment to Record Significant Market Share
- Germany, boasting one of the world's largest ICT markets, was home to about 100,000 IT firms, collectively employing roughly 1.189 million individuals in 2023.
- The Digital Agenda of the Federal Ministry for Economic Affairs and Climate Action delineates Germany's economic and innovation policy. It prioritizes cybersecurity, the digitalization of the economy, and the enhancement of the broadband network. This vision is further reinforced by the German National Digital Strategy 2025, which commenced its 10-year implementation in 2016.
- Businesses are increasingly adopting cloud services and integrating AI into their operations. The surge in IoT adoption amplifies data creation, spurring a heightened need for cloud services. Consequently, with the growing dependence on cloud solutions, leading enterprises are contemplating constructing hyperscale data centers to satisfy demand, moving away from leasing spaces from other providers.
- The growing appetite for AI solutions in the country is propelling its data center market. As the use of AI applications intensifies, there is a heightened need for resilient data infrastructure to handle computational and storage demands. Notably, global firms, including Siemens, are drawn to the German AI landscape, exemplified by Siemens' provision of solutions for the German Aerospace Center. Such collaborations underscore the escalating interest of international entities in Germany's AI domain. Consequently, these developments are fueling the expansion and construction of data centers in the country, catering to the surging data processing requirements.
Germany Data Center Construction Industry Overview
The German data center construction market is moderately consolidated, with key players such as Michel Bau GmbH & Co. KG and Mercury Engineering. Notably, major data center corporations are intensifying their investments in Germany, with a primary focus on expansion and building new facilities. This uptick in investments directly correlates with the growing demand for advanced data processing and storage capabilities.
June 2024: NTT DATA's Global Data Centers division unveiled plans for its third data center campus in Berlin. Spanning 10.8 hectares (about 26.6 acres), the campus will house two data centers with a combined planned capacity of 96 MW for critical IT operations. Situated in Brieselang, a municipality 30 km west of Berlin, construction on the new site is slated to commence in 2025.
March 2024: DataR, a German colocation firm, initiated the construction of a cutting-edge data center facility in Rellingen, Germany. Spanning 2,500 square meters, this facility is set to accommodate approximately 600 IT infrastructure racks. dataR's Rellingen data center is designed with a strong emphasis on eco-friendly construction and operational practices. The project is slated for completion by the close of 2025.
Germany Data Center Construction Market Leaders
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Mercury Engineering
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Michel Bau GmbH & Co. KG
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Collen Construction Limited
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DPR Construction
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Royal HaskoningDHV
*Disclaimer: Major Players sorted in no particular order
Germany Data Center Construction Market News
- January 2024: German data center company Maincubes is bolstering its footprint in Frankfurt by establishing a new facility. Situated in Dietzenbach, south of Frankfurt, within the Rhine-Main metropolitan area, the FRA04 facility will offer around 12,500 square meters (equivalent to 134,550 square feet) of whitespace and boast an IT capacity of 40 MW. Maincubes confirmed the acquisition of the site, securing a power commitment of 60 MW. The slated launch for this facility is set for 2027.
- March 2023: Maincubes secured the building permit for its BER01 data center, set to be constructed on the Berlin GoWest campus in Germany by 2025. Spanning 5,100 square meters of IT space, the center will offer an IT capacity of 8.2 MW and guarantee 100% SLA availability. Moreover, the facility will feature cutting-edge attributes such as energy-efficient cooling, a reliance on renewable energy sources, and a focus on targeted waste heat recovery.
Germany Data Center Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions And Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 Promoting Sustainability and Use of Renewable Energy Sources to Drive Market Growth
4.2.1.2 The Adoption of Cloud Base Services To Drive Market Growth
4.2.2 Market Restraints
4.2.2.1 The Tightening of Legal Regulations and Associated Mandates to Hinder Market Growth
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Key Germany Data Center Construction Statistics
4.4.1 Number of Data Centers in Germany, 2022 and 2023
4.4.2 Data Center Under Construction in Germany, In MW, 2024 - 2029
4.4.3 Average Capex and Opex for the German Data Center Construction
4.4.4 Data Center Power Capacity Absorption In MW, Selected Cities, Germany, 2022 and 2023
4.4.5 The Top CAPEX Spenders on Data Center Infrastructure in Germany
5. MARKET SEGMENTATION
5.1 By Infrastructure
5.1.1 By Electrical Infrastructure
5.1.1.1 Power Distribution Solution
5.1.1.1.1 PDU - Basic and Smart - Metered and Switched Solutions
5.1.1.1.2 Transfer Switches
5.1.1.1.2.1 Static
5.1.1.1.2.2 Automatic (ATS)
5.1.1.1.3 Switchgear
5.1.1.1.3.1 Low-Voltage
5.1.1.1.3.2 Medium-Voltage
5.1.1.1.4 Power Panels and Components
5.1.1.1.5 Others
5.1.1.2 Power Back-up Solutions
5.1.1.2.1 UPS
5.1.1.2.2 Generators
5.1.1.3 Service - Design & Consulting, Integration, Support & Maintenance
5.1.2 By Mechanical Infrastructure
5.1.2.1 Cooling Systems
5.1.2.1.1 Immersion Cooling
5.1.2.1.2 Direct-To-Chip Cooling
5.1.2.1.3 Rear Door Heat Exchanger
5.1.2.1.4 In-Row and In-Rack Cooling
5.1.2.2 Racks
5.1.2.3 Other Mechanical Infrastructure
5.1.3 General Construction
5.2 By Tier Type
5.2.1 Tier 1 and 2
5.2.2 Tier 3
5.2.3 Tier 4
5.3 By End User
5.3.1 Banking, Financial Services, and Insurance
5.3.2 IT and Telecommunications
5.3.3 Government and Defense
5.3.4 Healthcare
5.3.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Michel Bau GmbH & Co. KG
6.1.2 Mercury Engineering
6.1.3 Collen Construction Limited
6.1.4 DPR Construction
6.1.5 Royal HaskoningDHV
6.1.6 Soben
6.1.7 Winthrop Technologies Ltd
6.1.8 Zech Group
6.1.9 M+W Group GmbH
6.1.10 Noris Network AG
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. ABOUT US
9.1 Industries Covered
9.2 Illustrative List of Clients in the Industry
9.3 Our Customized Research Capabilities
Germany Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The German data center construction market is segmented by infrastructure (electrical infrastructure [power distribution solution (PDU, transfer switches, switchgear, power panels and components, and others), power back-up solution (UPS and generators), and service (design and consulting, integration, and support and maintenance)], mechanical infrastructure [cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, and in-row and in-rack cooling), racks, and other mechanical infrastructure], and general construction), tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services and insurance, IT and telecommunications, government and defense, healthcare, and other end users).
| By Infrastructure | ||||||||||||||||||||
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| General Construction |
| By Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| By End User | |
| Banking, Financial Services, and Insurance | |
| IT and Telecommunications | |
| Government and Defense | |
| Healthcare | |
| Other End Users |
Germany Data Center Construction Market Research FAQs
How big is the Germany Data Center Construction Market?
The Germany Data Center Construction Market size is expected to reach USD 6.70 billion in 2024 and grow at a CAGR of 8.73% to reach USD 11.06 billion by 2030.
What is the current Germany Data Center Construction Market size?
In 2024, the Germany Data Center Construction Market size is expected to reach USD 6.70 billion.
Who are the key players in Germany Data Center Construction Market?
Mercury Engineering, Michel Bau GmbH & Co. KG, Collen Construction Limited, DPR Construction and Royal HaskoningDHV are the major companies operating in the Germany Data Center Construction Market.
What years does this Germany Data Center Construction Market cover, and what was the market size in 2023?
In 2023, the Germany Data Center Construction Market size was estimated at USD 6.12 billion. The report covers the Germany Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Germany Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Germany Data Center Construction Industry Report
Statistics for the 2024 Germany Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Germany Data Center Construction analysis includes a market forecast outlook to for 2024 to (2024to2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Germany Data Center Construction Market Report Snapshots
