Study Period | 2018 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Volume (2025) | 1.69 Thousand MW |
Market Volume (2030) | 2.33 Thousand MW |
CAGR | 6.64 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Germany Data Center Market Analysis
The Germany Data Center Market size is estimated at 1.69 thousand MW in 2025, and is expected to reach 2.33 thousand MW by 2030, growing at a CAGR of 6.64%. Further, the market is expected to generate colocation revenue of USD 3,055.7 Million in 2025 and is projected to reach USD 4,486.7 Million by 2030, growing at a CAGR of 7.98% during the forecast period (2025-2030).
Germany's data center landscape is undergoing significant digital transformation driven by widespread cloud adoption and enterprise modernization initiatives. Approximately 83% of German companies now utilize cloud services, with 46% in advanced implementation phases and 38% in initial stages of cloud deployment. This shift reflects the broader industry trend toward hybrid and multi-cloud architectures, as organizations seek greater flexibility and scalability in their IT infrastructure. The increasing demand for edge computing capabilities and the need for low-latency applications have prompted data center operators to expand their presence across multiple German cities, creating a more distributed infrastructure network.
The market is experiencing substantial data center growth in sustainable operations and green energy initiatives. In smart cities like Weimar, the transformation is evident through infrastructure modernization, where 83% of traditional street lighting has been replaced with smart LED systems, resulting in energy savings of 100,000 kWh. This exemplifies the broader movement toward energy-efficient infrastructure across German cities, with data center operators increasingly investing in renewable energy sources and implementing advanced cooling technologies to reduce their environmental impact. The industry's commitment to sustainability is further demonstrated through the adoption of innovative power management solutions and green building certifications.
Industrial automation and digital transformation are reshaping the manufacturing sector's data center requirements. With Germany positioning itself as a leader in Industry 4.0, the country has deployed approximately 233,000 industrial robots as of 2022, highlighting the growing demand for robust data processing and storage capabilities. The manufacturing sector's digital evolution is expected to continue, with projections indicating that 84% of German manufacturers will invest approximately EUR 10.2 billion in automation technologies by 2025, driving the need for advanced data center infrastructure to support smart manufacturing operations.
The financial services sector is driving significant innovation in data center utilization, with approximately 68% of Germans now using contactless payments, reflecting the growing digitalization of banking services. This shift in consumer behavior, with 59% of Germans preferring cashless transactions, has prompted financial institutions to enhance their digital infrastructure capabilities. Recent industry developments include strategic expansions by major data center operators, such as CyrusOne's acquisition of the Europark office complex in Frankfurt in January 2023 for EUR 95 million and Vantage Data Centers' significant expansion in Berlin with new facilities offering enhanced capacity for financial services workloads.
Germany Data Center Market Trends
Surge in 5G-enabled smartphones and m-commerce is boosting the data center market
- Smartphone usage in Germany is expected to increase and register a CAGR of 1.4% by 2029. Smartphone usage is growing among the younger audience, with about 81% between the ages of 16 and 29 using their smartphones to shop online. It further highlights how m-commerce is driving the market growth. Also, the overall usage of the smartphone for shopping online increased from 54% in 2020 to about 60% in 2021, suggesting the digital inclusiveness of the market.
- The data from GFU suggested that the average price of a smartphone increased from about EUR 489 in 2018 to EUR 555 in 2021. Also, the smartphone revenue generated by the country increased from EUR 10,860 million in 2019 to EUR 11,930 in 2021. This highlights the buying power and requirement of smartphones among the buyers in the country, contributing to the increasing number of smartphones. As more 5G-enabled smartphones are available in Germany, users are expected to continue to buy the devices and leverage the growing bandwidth and network infrastructure. Major network service providers are aiming to extend the 5G service coverage to almost the entire population of the country by 2025, driving the smartphone market during the forecast period.
- With the smartphone adoption rate of 80% in 2021 to increase to about 84% by 2025 and an estimated subscriber penetration rate of 89% by 2025, the region is expected to see a rise in the number of smartphones. This would create more data-generating points, creating demand for data centers to provide the required processing platforms for smartphone-centric software and online storage options in Germany.
Surge in adoption of FTTH technology boost the data center market
- Most of Germany's network and internet infrastructure comprises copper wire networks delivering the internet to households and businesses. The data provided by the Organization for Economic Cooperation and Development suggested only about 2% of the broadband connections accounted for pure fiber-optic systems in 2019, increasing to just 5.4% in 2022, which still indicated more than 90% of the rest of the connections to use improved copper connections. The companies used vectoring technology to enhance the copper wire network, which still could not get speeds exceeding 250 Mbps even in the areas with better network availability.
- Being a part of the EU, "Europe 2020" pushed the network development with a common goal to provide 100 Mbps to 50% of households by 2020. However, despite vectoring technology and large-scale DSL implementation, by 2017, only about 77% of German households received speeds of about 50 Mbps, far less than the targeted speeds. However, for fiber connectivity expansion, in 2019, the German government announced a plan to invest EUR 12 billion to achieve about 1,000 Mbps speed at a large scale by 2025.
- The requirement for faster network connectivity highlighted in the COVID-19 pandemic has hastened the introduction of FTTH in Germany. The data suggested that the country exhibited the third-highest growth rate in FTTH deployment in Europe, with an increase of about 66% in 2022, compared to 2021, with goals for considerable roll-outs by 2025. This would also attract more data center facilities and investment opportunities to leverage the developed conditions in Germany during the forecast period.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Availability of internet in households and increase in work-from-home video conferencing, video streaming, gaming si boosting the market demand
- Mobile internet expansion in rural areas and deploying technologies like Open RAN to smoothen the extension of 5G technologies boost the market
- German Digital Infrastructure Ministry subsidy for fiber-based telecom is boosting the market demand
Segment Analysis: By Data Center Size
Massive Segment in German Data Center Market
The massive data center segment dominates the German data center market, commanding approximately 43% data center market share in 2024, with an IT load capacity of 740.6 MW. Frankfurt remains the most preferred location for massive data centers, hosting around 78% of these facilities, followed by Berlin, Hamburg, and Munich. Leading operators like Digital Realty, Global Switch, Equinix, NTT Ltd, CyrusOne, and Vantage Data Centers have established significant massive data center facilities across these locations. The segment's prominence is driven by Germany's stringent data regulations and various government initiatives offering incentives and benefits on tax, electricity, and land costs, making it an attractive proposition for companies to invest in massive data center facilities.
![Market Analysis of Germany Data Center Market: Chart for By Data Center Size](https://s3.mordorintelligence.com/germany-data-center-market/germany-data-center-market-German-Data-Center-Market-Market-Share-by-Size-Segment-2024-1737434796163.webp)
Large Segment in German Data Center Market
The large data center segment is experiencing the most rapid growth in the German market, projected to expand at approximately 9% CAGR from 2024 to 2029. This growth is primarily driven by the ongoing developments in smart cities and increasing digitalization initiatives across Germany. The segment's expansion is particularly notable in Frankfurt, which accounts for about 72% of large data centers, followed by strategic locations in Dusseldorf, Berlin, Hamburg, Munich, and Hannover. Companies are actively expanding their large data center footprint, with several construction projects underway by operators like PentaInfra and Maincube, demonstrating the segment's strong growth trajectory and increasing importance in meeting Germany's digital infrastructure needs. The average size of data center facilities in this segment is also increasing to accommodate the growing demand.
Remaining Segments in Data Center Size Market
The mega, medium, and small data center segments each play distinct roles in serving different market needs. Mega data centers are particularly concentrated in Frankfurt, offering substantial computing power and storage capabilities for large-scale operations. Medium data centers, predominantly Tier 1 & 2 and Tier 3 certified, are spread across various cities including Frankfurt, Dusseldorf, Berlin, Mannheim, Nuremberg, and Schwerin, serving mid-sized business requirements. Small data centers, while having a modest market presence, continue to serve specific local needs and smaller enterprises, particularly in regions where massive or large facilities might be unnecessary or impractical.
Segment Analysis: By Tier Type
Tier 3 Segment in German Data Center Market
Tier 3 data centers dominate the German data center market, commanding approximately 56% data center market share in 2024. Germany has 55 Tier 3 data center facilities, strategically located across major cities including Frankfurt, Berlin, Dusseldorf, Munich, Hamburg, and other regions. Frankfurt leads with the highest concentration of Tier 3 facilities, accounting for about 61% of the total Tier 3 capacity. These facilities are particularly attractive to medium and large businesses due to their optimal balance of features and affordability. Key advantages include disaster recovery options, comprehensive firefighting systems, and power outage protection of 72 hours, making them highly reliable for business operations. The growing demand for streaming content, digital payments, online gaming, and smart city initiatives continues to drive the expansion of Tier 3 data centers across Germany.
Tier 4 Segment in German Data Center Market
The Tier 4 segment is experiencing remarkable growth in the German data center market, projected to grow at approximately 13% during 2024-2029. This substantial growth is driven by increasing demand for high-reliability infrastructure from large enterprises requiring maximum uptime and fault tolerance. These facilities feature sophisticated mirrored systems that ensure operational continuity even during system failures or natural events. With an annual downtime of just 26.3 minutes and advanced fault-tolerant infrastructure, Tier 4 facilities are becoming increasingly essential for mission-critical operations. Companies like CyrusOne and Vantage Data Centers are actively expanding their Tier 4 presence, with CyrusOne planning a new facility with 31.5 MW capacity and Vantage Data Centers expanding its Berlin facilities BER-1 and BER-2 with planned capacities of 16 MW and 40 MW respectively.
Remaining Segments in Tier Type
Tier 1 & 2 data centers represent the basic infrastructure segment of the German data center market. These facilities primarily cater to smaller businesses with minimal requirements and basic infrastructure needs. While they offer essential services, their market influence is gradually diminishing as businesses increasingly gravitate towards higher-tier facilities that offer enhanced reliability and advanced features. The limited scalability and basic infrastructure of Tier 1 & 2 facilities make them suitable mainly for organizations with non-critical operations and minimal uptime requirements. However, they continue to serve an important role in providing cost-effective solutions for small-scale operations and businesses with basic data center needs.
Segment Analysis: By Absorption
Utilized Segment in Germany Data Center Market
The utilized segment dominates the German data center market, accounting for approximately 83% of the total data center capacity in 2024. This significant market share is driven by the growing adoption of various smart industry segments, including digital health, online education, and government services, which are complementing the occupancy percentage of facilities. The revenue generated in healthcare and online education sectors has shown remarkable growth, with projections indicating substantial expansion in the coming years. The increasing adoption of digital services by users, coupled with the rising demand for cloud computing, data storage, and processing capabilities, continues to drive the utilization rates higher. Major data center operators are experiencing improved absorption rates due to the ongoing disruption between demand and supply of racks and computing servers in the market. The growth of digitized solutions, automation services, and the adoption of various smart devices are creating a steady demand for data center capacity, leading to higher utilization rates across facilities.
Non-Utilized Segment in Germany Data Center Market
The non-utilized segment in the German data center market represents the available capacity that remains unoccupied, serving as essential buffer capacity for future growth and expansion. This segment plays a crucial role in maintaining market flexibility and ensuring that facilities can accommodate sudden spikes in demand or new client requirements. Data center operators strategically maintain certain levels of non-utilized capacity to support rapid deployment capabilities for new customers and allow for the expansion of existing clients' operations. The non-utilized capacity also enables data centers to implement regular maintenance schedules and upgrades without disrupting existing operations. Furthermore, this segment serves as a strategic reserve for accommodating emerging technologies and evolving business needs, particularly in rapidly growing sectors such as cloud computing, artificial intelligence, and edge computing applications.
Germany Data Center Industry Overview
Top Companies in Germany Data Center Market
The data center companies in Germany market features prominent global players like Digital Realty Trust, NTT Ltd, Equinix Inc., and Leaseweb Global BV leading the competitive landscape. Companies are actively expanding their footprint through greenfield developments and strategic acquisitions, particularly in key locations like Frankfurt, Berlin, and Munich. The market witnesses continuous product innovation through advanced cooling technologies, renewable energy adoption, and enhanced power efficiency measures. Operational agility is demonstrated through flexible colocation options, customizable rack densities, and comprehensive managed services offerings. Strategic partnerships with cloud providers, network operators, and technology vendors are becoming increasingly common to enhance service portfolios. Market leaders are focusing on sustainability initiatives, implementing green building practices, and investing in renewable energy sources to meet growing environmental concerns.
Market Dominated by Global Infrastructure Giants
The German data center market exhibits a relatively consolidated structure dominated by global infrastructure conglomerates with extensive international operations. These major players leverage their worldwide expertise, financial resources, and established relationships with global enterprises to maintain their market positions. The market demonstrates moderate consolidation with the top five players controlling a significant portion of the total capacity, while regional specialists and smaller operators serve specific geographic areas or niche requirements. Merger and acquisition activities remain robust, with larger players actively acquiring smaller facilities and regional operators to expand their footprint and service capabilities.
The competitive dynamics are characterized by a mix of established global operators and emerging specialized providers focusing on specific market segments or technologies. Market participants are increasingly pursuing strategic partnerships and joint ventures to enhance their service offerings and geographic reach. The presence of both international and domestic players creates a diverse competitive environment, with different operators targeting various customer segments based on their specific needs and requirements. The market structure continues to evolve with new entrants bringing innovative solutions and established players expanding their capabilities through strategic investments.
Innovation and Sustainability Drive Future Success
Success in the German data center market increasingly depends on operators' ability to combine technological innovation with sustainable operations. Market leaders are strengthening their positions by investing in next-generation technologies, improving energy efficiency, and expanding their renewable energy portfolios. Companies are focusing on developing comprehensive service portfolios that include advanced cooling solutions, enhanced security features, and flexible colocation options. The ability to provide scalable solutions while maintaining high reliability and performance standards remains crucial for market success. Operators are also emphasizing customer service excellence and developing strong relationships with key stakeholders in the ecosystem.
For contenders looking to gain data center market share, differentiation through specialized services and innovative solutions presents significant opportunities. Success factors include developing strong partnerships with cloud providers, offering competitive pricing structures, and maintaining high service quality standards. The market rewards operators who can demonstrate strong environmental credentials and sustainable operations practices. Regulatory compliance, particularly regarding data protection and energy efficiency, continues to shape competitive strategies. Future success will increasingly depend on operators' ability to balance expansion with sustainable practices, while meeting evolving customer needs for hybrid and multi-cloud deployments.
Germany Data Center Market Leaders
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CyrusOne Inc.
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Digital Realty Trust Inc.
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Equinix Inc.
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Iron Mountain Incorporated
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NTT Ltd
- *Disclaimer: Major Players sorted in no particular order
Germany Data Center Market News
- January 2023: CyrusOne acquired an office complex in Frankfurt, Germany, planning to turn it into a data center campus. Corum sold the Europark office complex in Frankfurt for EUR 95 million (USD 102.3 million) before confirming CyrusOne was the buyer.
- November 2022: Lumen announced plans to sell its EMEA operations to Colt Technology Services. The communications company announced entering an exclusive arrangement for the proposed sale of Lumen's Europe, Middle East, and Africa (EMEA) business to Colt for USD 1.8 billion. The deal is set to close in 2023.
- November 2022: Vantage Data Centers announced the opening of three new facilities in Berlin and Frankfurt and a new German office in Raunheim. A second data center was added to Vantage's 25-acre (10-hectare) Berlin I campus. It offered 16 MW of IT capacity to hyperscalers and large cloud providers in a two-story, 130,000-square-foot (12,000-square-meter) facility. Once fully developed, the expanded campus would include four data centers totaling 56 MW and 474,000 square feet (44,000 square meters).
Germany Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
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5.6 Regulatory Framework
- 5.6.1 Germany
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
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6.1 Hotspot
- 6.1.1 Frankfurt
- 6.1.2 Rest of Germany
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6.2 Data Center Size
- 6.2.1 Large
- 6.2.2 Massive
- 6.2.3 Medium
- 6.2.4 Mega
- 6.2.5 Small
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6.3 Tier Type
- 6.3.1 Tier 1 and 2
- 6.3.2 Tier 3
- 6.3.3 Tier 4
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6.4 Absorption
- 6.4.1 Non-Utilized
- 6.4.2 Utilized
- 6.4.2.1 By Colocation Type
- 6.4.2.1.1 Hyperscale
- 6.4.2.1.2 Retail
- 6.4.2.1.3 Wholesale
- 6.4.2.2 By End User
- 6.4.2.2.1 BFSI
- 6.4.2.2.2 Cloud
- 6.4.2.2.3 E-Commerce
- 6.4.2.2.4 Government
- 6.4.2.2.5 Manufacturing
- 6.4.2.2.6 Media & Entertainment
- 6.4.2.2.7 Telecom
- 6.4.2.2.8 Other End User
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
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7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 CyrusOne Inc.
- 7.3.2 Digital Realty Trust Inc.
- 7.3.3 Equinix Inc.
- 7.3.4 Global Switch Holdings Limited
- 7.3.5 GlobalConnect AB
- 7.3.6 Iron Mountain Incorporated
- 7.3.7 Leaseweb Global BV
- 7.3.8 Lumen Technologies Inc.
- 7.3.9 Noris Network AG
- 7.3.10 NTT Ltd
- 7.3.11 Telehouse (KDDI Corporation)
- 7.3.12 Vantage Data Centers LLC
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
Germany Data Center Industry Segmentation
Frankfurt are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.Hotspot | Frankfurt | |||
Rest of Germany | ||||
Data Center Size | Large | |||
Massive | ||||
Medium | ||||
Mega | ||||
Small | ||||
Tier Type | Tier 1 and 2 | |||
Tier 3 | ||||
Tier 4 | ||||
Absorption | Non-Utilized | |||
Utilized | By Colocation Type | Hyperscale | ||
Retail | ||||
Wholesale | ||||
By End User | BFSI | |||
Cloud | ||||
E-Commerce | ||||
Government | ||||
Manufacturing | ||||
Media & Entertainment | ||||
Telecom | ||||
Other End User |
Germany Data Center Market Research FAQs
What is the current Germany Data Center Market size?
The Germany Data Center Market is projected to register a CAGR of 6.64% during the forecast period (2025-2030).
Who are the key players in Germany Data Center Market?
CyrusOne Inc., Digital Realty Trust Inc., Equinix Inc., Iron Mountain Incorporated and NTT Ltd are the major companies operating in the Germany Data Center Market.
Which segment has the biggest share in the Germany Data Center Market?
In the Germany Data Center Market, the Tier 3 segment accounts for the largest share by tier type.
Which is the fastest growing segment in the Germany Data Center Market?
In 2025, the Tier 4 segment accounts for the fastest growing by tier type in the Germany Data Center Market.
What years does this Germany Data Center Market cover, and what was the market size in 2025?
In 2025, the Germany Data Center Market size was estimated at 1.69 thousand. The report covers the Germany Data Center Market historical market size for years: 2018, 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Germany Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Germany Data Center Market Research
Mordor Intelligence provides a comprehensive analysis of the data center industry in Germany. We leverage our extensive expertise in data center market research and consulting services. Our detailed examination covers key locations, including Berlin data centers and major data centers in Deutschland. We focus particularly on colocation in Germany and data center cooling infrastructure. The report offers insights into the average size of data centers, data center capacity growth, and emerging trends across the German market landscape.
Our thorough market analysis benefits stakeholders by offering a detailed evaluation of data center growth trends and industry dynamics. This information is available as a downloadable report PDF. The research includes publicly traded data center companies and their operations, tier 1 data center markets, and crucial developments in data center capacity management. Stakeholders gain valuable insights into German data center operations. This includes comprehensive coverage of data center on demand services and emerging technological innovations shaping the Germany data center market through 2024 and beyond.