Growth in colocation and hyperscale investment will drive growth

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German data center market

German data center market

German data center market

Dublin, Nov. 16, 2023 (GLOBE NEWSWIRE) — The “Germany Data Center Market, Competition, Forecast and Opportunities, 2028” report has been added to supply.

The German data center market is expected to witness steady growth at a CAGR during the forecast period 2024-2028. Increased demand for cloud computing among SMEs, government regulations on regional data security, and increasing local investment are important factors influencing the demand of data centers in the country.

An actual premises, building or other physical structure known as a data center contains the IT equipment needed to develop, deploy and offer applications and services. It also stores and manages the data that goes along with it. Data centers are now carefully regulated on-premises facilities, not private as they were in the previous few years.

Growth in colocation and hyperscale investments will drive market growth

For a number of reasons, Germany has attracted businesses and service providers seeking greater business coordination and flexibility through the provision of digital services. A significant part of Europe’s gross domestic product (GDP) is produced by it, making it one of the most economically significant members of the EU. The nation’s economic importance has led several small and medium-sized data centers to make significant investments in infrastructure that can accommodate the growing need for data storage that goes hand-in-hand with the demand for digital services.

The growth in the construction of hyperscale data centers and the introduction of GDPR, which stimulated investment and growth of regional cloud networks in Germany, contributed to the significant growth of the data center market in the last few years. Businesses in the nation are also noticing significant data generation across industries, which may have a favorable impact on investments in Big Data and IoT technology in the data center market. Vantage Data Center and CloudHQ NDC Data Center are two new entrants that intend to build multiple hyperscale facilities.

In addition, Konica Minolta’s infrastructure-as-a-service (IaaS) cloud data center services were introduced in July 2021. It helps businesses minimize the cost and effort associated with their IT infrastructure while enhancing security. In Konica Minolta’s own data centers in Stockholm, Sweden and Hannover, Germany, the package provides a virtual IT infrastructure environment with network, storage and server resources.

Growing demand for SaaS and network clients from the pandemic response, requiring remote work and education, benefits colocation and cloud service providers. In addition, demand for these services is growing, making them particularly recession-proof. As a result, data center development projects continue to meet demand. During the forecast period, the country’s growing need for colocation data centers and hyperscale investments are expected to drive market expansion.

5G deployment and smart city initiatives Leading investments in data centers

The German market is deploying and using 5G services in commercial and industrial settings. Leading companies are rolling out 5G in Germany, including Telstra, Vodafone, TPG Telecom and Optus. The need for data centers is growing in Germany due to 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 spectral bands of 2.1 GHz and 3.5 GHz, respectively. In order to become greener, safer and more economical, data centers in Germany are investing in new technologies. For example, in 2022, Nokia unveiled its 5G Industrial Incubation Lab.

In March 2022, the German government announced plans to invest around $750 million in the NBN fixed wireless network, with the remaining $480 million coming from the NBN (two options for Australian households to access the internet). The funds will help NBN accelerate the rollout of 5G millimeter wave technology across the entire fixed wireless network.

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

Key Attributes:

Report attribute


Number of pages


Forecast period

2023 – 2028

Estimated Market Value (USD) in 2023

$5.43 billion

Estimated Market Value (USD) to 2028

$7.33 billion

Compound Annual Growth Rate


Regions covered


The competitive environment

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

  • NDC Data Centers GmbH

  • Arista Networks

  • Broadcom Inc.

  • Cisco Systems Inc.

  • Dell Technologies Inc.

  • Hewlett Packard Enterprise

  • Huawei technology co. Ltd

  • IBM Corporation

  • Datacenter One GmbH

  • Cyxtera Technologies Inc.

Report Scope:

Data center in Germany, by solutions:

Data center in Germany, by enterprise size:

Data center in Germany, by end user:

Data center in Germany, by region:

  • Northwest

  • Northeast

  • Southwest

  • Southeast

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