Germany Data Center Market Segmented By Solution (IT Infrastructure, General Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, and Others), By Enterprise Size (Large Enterprises and Small & Medium Enterprises (SMEs)), By End-User (Information Technology & Telecom, Government, BFSI, Healthcare, and Others), By Region, Competition, Forecast and Opportunities 2028

Germany data center market is anticipated to witness a growth of steady CAGR during the forecast period, 2024-2028. The increased demand for cloud computing among SMEs, government regulations for regional data security, and increasing local investment are important factors affecting the demand for data centers in the country.​

An actual room, building, or other physical structure known as a data center houses the IT equipment required to develop, deploy, and offer applications and services. It also stores and manage the data that goes along with them.  Data centers are now carefully regulated on-premises facilities rather than privately held ones, as they were in the previous several years.

Growth In Colocation and Hyperscale Investments will Lead to Growth in the Market

For a numerus reasons, Germany has drawn businesses and service providers looking for increased business coordination and agility through the provision of digital services. A considerable portion of Europe's gross domestic product (GDP) is produced by it, making it one of the most economically significant EU members. The nation's economic importance has led several small and medium-sized data centers to make considerable investments in infrastructure that can accommodate the rising need for data storage which goes hand in hand with the demand for digital services.

The surge in the construction of hyperscale data centers and the introduction of GDPR, which has been stimulating investments and the growth of regional cloud networks in Germany, have both contributed to the significant growth of the data center market in the past few years. Businesses in the nation are also noticing significant data generation across industries, which may have a favourable impact on investments in Big Data and IoT technology in the data center market. Vantage Data Center and CloudHQ NDC Data Center are two recent entrants who intend to construct numerous hyperscale facilities.  

Additionally, the cloud data center services with Infrastructure as a Service (IaaS) package from Konica Minolta was introduced in July 2021. It helps businesses to minimise expenses and effort associated with their IT infrastructure while enhancing security. In Konica Minolta's own data centers in Stockholm, Sweden and Hanover, Germany, the package provides a virtual IT infrastructure environment with a network, storage, and server resources. Rising SaaS and network client demand from the pandemic response mandating remote working and education has been beneficial for colocation service providers and the cloud. Also, the demand for these services has been rising, making them particularly recession resistant. As a result, data center development projects have continued to keep up with the demand. During the anticipated period, the country's growing need for colocation data centers and hyperscale investments are anticipated to fuel market expansion.

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The Germany market is deploying and utilising 5G services in commercial and industrial settings. Leading companies are putting 5G into use in Germany, including Telstra, Vodafone, TPG Telecom, and Optus. The need for data centers is increasing in Germany because of investments in smart cities and 5G deployment. The carrier aggregation method was used in Germany to implement a combination of 5G FDD GHz and TDD with spectrum ranges of 2.1 GHz and 3.5 GHz, respectively. To become more environmentally friendly, secure, and economical, data centers in Germany are investing in new technology. For instance, in 2022, Nokia unveiled its 5G industrial incubation lab. In March 2022, the Germany government announced plans to invest around 750 million dollars in the NBN fixed wireless network, with the remaining 480 million dollars coming from NBN (two options for Australian households to access the internet). The funds will aid NBN in accelerating the rollout of 5G millimetre wave technology over the entire fixed wireless network.

As a result, to be more affordable, secure, and environmentally friendly, Germany data centers are investing in cutting-edge technology.

Recent Developments

• In January 2023, CyrusOne purchased a building in Frankfurt, Germany with the intention of converting it into a campus for data centers. Before declaring that CyrusOne was the buyer, the investment firm Corum had sold the Europark office complex in Frankfurt for EUR 95 million (USD 102.3 million).

• Lumen conveyed intentions to sell Colt Technology Services its EMEA business in November 2022. To sell Lumen's Europe and Middle East and Africa (EMEA) division to Colt for USD 1.8 billion, the communications company announced entering into an exclusive agreement. Early 2023 was the target date for the deal's completion.

• The companies operating in the area are purchasing various providers of data center solutions to diversify their product/solution or service portfolios. For instance, the German private equity company Deutsche Beteiligungs AG (DBAG), which also invested in and bought two of the data centers owned by the IT consultant akquinet, created a new DACH-focused data center operator in March 2022. The company disclosed that its DBAG Fund VII was conducting a management buyout (MBO) to acquire the entire stock of akquinet AG. Together with the fund, DBAG invested up to around EUR 5 million (USD 5.5 million) to acquire roughly 20% of the shares. To provide low cost and low carbon solution for data center workloads outside of Germany while giving highly linked choices with low latency to major markets, bulk data operators of data centers and data center services are expanding in the Nordics areas.

• Google said in September 2021 that it intended to expand its operations in Germany by investing USD 1.1 billion in new data centers. By 2022, the newly constructed Hanau data center by NDC-Garbe hopes to be completely operational. The structure will have 10,000 square metres of space and be four floors tall. A mix of adiabatic and dry cooling modes is one of the features that help reduce the likelihood of water scarcity.

• The second phase of building for one of Vantage's data center complexes in Frankfurt, Germany, was shown in February 2022. The company stated that it constructs the second of three buildings on its 55MW EU campus (FRA1) in Offenbach. The finished facility will be 13,000 square metres (140,000 square feet) in size and have a 16MW capacity. Additionally, it will launch consumer service in the first half of 2024.

• As of January 2022, with a combined 24MW electricity, Maincubes intends to build its third data center in Frankfurt and Berlin. A colocation and data center operator called Maincubes has revealed intentions to construct two new data centers. The business will debut its first structure in Berlin and third location in Frankfurt.

• The iCube 2.0 and the 9PX lithium-ion UPS, two new products from Eaton that are part of their mini data center and 9PX uninterruptible power supply series, were introduced in June 2021. Businesses are now able to attain information and operational technology excellence with the aid of the new regional solutions, setting their company for success in the on-going energy transition.

• ABB and AFC Energy entered into a strategic investment and development agreement in April 2021 to further the integration of fuel cell technology into their fast-growing data center and eMobility markets.

• Vantage Data Centers announced the opening of two brand-new campuses in Warsaw and Berlin in June 2022. The new locations are a part of Vantage's USD 2 billion expansion into Europe, which will deliver data center campuses to hyperscalers and cloud providers in two highly sought-after regions.

Market Segmentation

Germany data center market can be segmented by solution, enterprise size, end user, and region. Based on solution, the market is divided into IT infrastructure, general infrastructure, electrical infrastructure, mechanical infrastructure, and others. Based on enterprise size, the market is segmented into large enterprises and small & medium enterprises (SMEs). Based on end-user industry, the market is divided into information technology & telecom, government, BFSI, healthcare, and others. Based on region, market is divided into North-West, North-East, South -West, and South-East.

Market Players

NDC Data Centers GmbH, Arista Networks, Broadcom Inc., Cisco Systems Inc., Dell Technologies Inc., Hewlett Packard Enterprise, Huawei technologies co. Ltd, IBM Corporation, Datacenter One GmbH, and Cyxtera Technologies inc. are some of the leading players operating in the Germany data center market.

In this report, the Germany data center market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Germany Data Center, By Solutions:

o   IT Infrastructure

o   General Infrastructure

o   Electrical Infrastructure

o   Mechanical Infrastructure

o   Others

·         Germany Data Center, By Enterprise Size:

o   Large Enterprises

o   Small & Medium Enterprises (SMEs)

·         Germany Data Center, By End-User:

o   Information Technology & Telecom

o   Government

o   BFSI

o   Healthcare

o   Others

·         Germany Data Center, By Region:

o   North-West

o   North-East

o   South -West

o   South-East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Germany data center market.

Available Customizations:

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Company Information

·         Detailed analysis and profiling of additional market players (up to five).

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