Germany Data Center Market Size

The Germany Data Center Market is experiencing significant growth, driven by the increasing adoption of advanced internet-enabled devices and the implementation of 5G networks. This shift is leading to a higher demand for data centers with greater capacity and reliability, particularly tier 4 facilities, which are expected to capture a larger portion of the market share. The expansion of smart cities and the need for efficient infrastructure further support the growth of data centers, as they require minimal downtime and robust computing services.

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Germany Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 1.72 Thousand MW
svg icon Market Volume (2029) 2.36 Thousand MW
svg icon Largest Share by Tier Type Tier 3
svg icon CAGR (2024 - 2029) 6.46 %
svg icon Fastest Growing by Tier Type Tier 4

Major Players

Germany Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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Germany Data Center Market Analysis

The Germany Data Center Market size is estimated at 1.72 thousand MW in 2024, and is expected to reach 2.36 thousand MW by 2029, growing at a CAGR of 6.46%. Further, the market is expected to generate colocation revenue of USD 4,220.4 Million in 2024 and is projected to reach USD 5,770.2 Million by 2029, growing at a CAGR of 6.46% during the forecast period (2024-2029).

USD 4,220.40 Million

Market Size in 2024

USD 5,770.2 Million

Market Size in 2029

7.7%

CAGR (2017-2023)

6.5%

CAGR (2024-2029)

IT Load Capacity

1,723 MW

Value, IT Load Capacity, 2024

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The IT load capacity of the German data center market may grow steadily and reach 2,356 MW by 2029. The increased data consumption and advanced network infrastructure would directly impact the need for data centers to store the data.

Total Raised Floor Space

Sq. Ft. 8.61 M

Volume, Raised Floor Space, 2024

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Potential competitors looking forward to adding to their overall capacity through new facilities. Vantage Data Centers plans to expand its existing Berlin facilities BER-1 and BER-2, wit an IT load capacities of 16 MW and 40 MW by 2029.

Installed Racks

430,786

Volume, Installed Racks, 2024

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The country's total number of installed racks is expected to reach 588,980 units by 2029. Frankfurt will likely house the maximum number of racks by 2029.

# of DC Operators & DC Facilities

40 and 141

Volume, DC Facilities, 2024

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Germany's stringent data regulations have led companies to opt for data centers. Several initiatives taken by the government to make its cities smart are expected to propel the growth of the number of data centers to more than 142 by 2029.

Leading Market Player

18.6%

Market Share, Digital Realty Trust, Inc., Inc.

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Digital Realty led the market with a share of 18.6% and an operational capacity of 287.3 MW. New entrants such as Maincube are expected to develop data center facilities in Frankfurt and Berlin.

Tier 3 data center accounted for majority share in terms of volume in 2023, and is expected to dominate through out the forecasted period

  • The tier 4 segment leads the German data center market based on tier capacity. The segment's capacity is expected to grow from 524.3 MW in 2023 to 1112.5 MW by 2029, with a CAGR of 13.4%. With evolving technology, the German population is increasingly adopting various internet devices such as desktops, tablets, smartphones, consoles, and smart gear for streaming content, home security, online gaming, and other services.
  • This trend has led to a shift from traditional desktops or laptops to a range of new devices. Initially, data centers were meant to cater to the minimal requirements of clients. Thus, they were small in size and had Tier 1 & 2 certifications and minimum racks.
  • With the growing adoption of new devices and the implementation of a 5G network to provide the necessary speeds to use these devices at the fullest potential, companies are shifting toward facilities that offer uninterrupted computing services. Therefore, the market share of tier 4 facilities is expected to increase from 34% in 2023 to 47.2% in 2029.
  • The number of people living in smart cities accounts for around 76%, which is expected to increase further. For instance, smart cities such as Weimar have transitioned their street lighting from traditional bulbs to smart LEDs due to rising energy prices. Around 83% of the lighting has been replaced with the smart lighting system, thus helping save energy of 100,000 kWh and reduce lighting expenses. Such infrastructural developments are supported by tier 3 and 4 facilities with minimal downtimes, thus complementing the growth of these segments in the market.
Germany Data Center Market

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.

  • The tier 4 segment leads the German data center market based on tier capacity. The segment's capacity is expected to grow from 524.3 MW in 2023 to 1112.5 MW by 2029, with a CAGR of 13.4%. With evolving technology, the German population is increasingly adopting various internet devices such as desktops, tablets, smartphones, consoles, and smart gear for streaming content, home security, online gaming, and other services.
  • This trend has led to a shift from traditional desktops or laptops to a range of new devices. Initially, data centers were meant to cater to the minimal requirements of clients. Thus, they were small in size and had Tier 1 & 2 certifications and minimum racks.
  • With the growing adoption of new devices and the implementation of a 5G network to provide the necessary speeds to use these devices at the fullest potential, companies are shifting toward facilities that offer uninterrupted computing services. Therefore, the market share of tier 4 facilities is expected to increase from 34% in 2023 to 47.2% in 2029.
  • The number of people living in smart cities accounts for around 76%, which is expected to increase further. For instance, smart cities such as Weimar have transitioned their street lighting from traditional bulbs to smart LEDs due to rising energy prices. Around 83% of the lighting has been replaced with the smart lighting system, thus helping save energy of 100,000 kWh and reduce lighting expenses. Such infrastructural developments are supported by tier 3 and 4 facilities with minimal downtimes, thus complementing the growth of these segments in the market.
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
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Germany Data Center Market Size Summary

The Germany Data Center Market is experiencing significant growth, driven by the increasing adoption of internet-connected devices and the implementation of advanced network technologies like 5G. As the population shifts from traditional computing devices to a diverse range of smart gadgets, the demand for data centers with robust computing capabilities is on the rise. This trend is further supported by the expansion of smart city initiatives, which require reliable infrastructure to support minimal downtimes. The market is witnessing a transition towards tier 4 facilities, which offer higher capacity and reliability, catering to the growing need for uninterrupted computing services. The expansion of fiber-optic connectivity, although still in its nascent stages, is expected to enhance network speeds and attract further investment in data center facilities.

The market landscape is moderately consolidated, with major players like CyrusOne Inc., Digital Realty Trust Inc., Equinix Inc., Iron Mountain Incorporated, and NTT Ltd. dominating the scene. Recent strategic moves, such as acquisitions and expansions, highlight the competitive nature of the market. The ongoing development of data center campuses and the sale of regional operations by key players underscore the dynamic environment. As Germany continues to enhance its network infrastructure and increase smartphone penetration, the demand for data centers is poised to grow, providing ample opportunities for investment and expansion in the coming years.

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Germany Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Frankfurt

      2. 1.1.2 Rest of Germany

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

Germany Data Center Market Size FAQs

The Germany Data Center Market is projected to register a CAGR of 6.46% during the forecast period (2024-2029).

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.

Germany Data Center Market Report Snapshots

Germany Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029