The data center market in Germany continues to see uninterrupted growth in 2025. A recent study by the digital association Bitkom shows that the installed capacity of all data centers and smaller IT installations is rising significantly. For IT decision-makers and management levels, the shifts toward colocation and the projected relevance of AI infrastructures are particularly important.
The total capacity of data centers in Germany will increase in 2025 by around 250 megawatts to a total of 2,980 megawatts. This corresponds to a 9% increase compared to the previous year. A key trend is the growing importance of colocation data centers. In 2025, their share of total data center capacity will exceed 50% for the first time.
Compared to the previous year, the colocation segment is seeing capacity growth of 17.5%. A key driver of this development is demand from international hyperscale cloud providers, which have so far operated hardly any of their own data centers in Germany and instead make extensive use of colocation offerings. Cloud installations now account for 49% of German capacity.
From a regional perspective, the dominance of the greater Frankfurt am Main area is confirmed. With an installed capacity of over 1,100 megawatts, this location accounts for more than one third of the national total capacity. In a European comparison, the region is growing particularly dynamically.
Alongside Frankfurt, Berlin is increasingly establishing itself as a second relevant hub, while northern federal states such as Schleswig-Holstein or Mecklenburg-Vorpommern score points thanks to the availability of land and renewable energy. Site selection is largely influenced by factors such as connectivity to internet exchange points and available grid connection capacity.
Looking ahead makes it clear that cloud and AI applications will further accelerate market growth. By 2030, data center capacities in Germany are expected to rise to around 5,000 megawatts.
Particularly significant is the projected increase in AI data centers. The share of AI capacity is likely to rise from around 15% today to about 40% by 2030. Edge data centers will also gain importance due to latency-critical AI applications.
With the expansion of capacity, energy consumption inevitably increases. For 2025, data centers in Germany are forecast to require 21.3 billion kilowatt-hours of energy.
Despite the growth, operators face challenges. Limited power grid capacities as well as lengthy planning and permitting procedures have been identified as key obstacles that could limit Germany’s potential as a location in the medium term.
In 2025, the German data center market is proving extremely robust and is growing to a total capacity of 2,980 megawatts, with colocation offerings now accounting for more than half of capacity. While Frankfurt maintains its dominant position, artificial intelligence is becoming the decisive growth engine for the coming decade—its potential, however, will depend largely on the availability of sufficient power grid capacity.
Download the full German-language report here:
Data Centers in Germany (Current Market Developments (Update 2025)
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