Germany is already one of Europe’s most important hubs for data centers. Frankfurt ranks as the second most critical location after London, renowned for its strategic position and exceptional connectivity. It is home to DE-CIX, one of the world’s largest internet exchange points, which further enhances its appeal for data center operators.
Berlin is experiencing rapid growth as a data center hub. While Munich and Hamburg don’t yet play leading roles, they still contribute significantly to Germany’s prominence in the data center landscape.
The German Datacenter Association recently published its German Datacenter Outlook 2024/25, offering a comprehensive overview of the current status and highlighting the sector’s new growth momentum.
As of today, the data center industry employs around 65,000 people in Germany, including direct, indirect, and induced employment. The trend is upward. The industry is entering a dynamic growth phase, fueled by technological innovation, new regulatory requirements, and rising demand for AI and cloud solutions.
Dynamic Growth in Frankfurt and Berlin
The current expansion of data center capacity in Germany underscores strong momentum, especially in Frankfurt and Berlin. With 745 MW of active IT capacity, Frankfurt remains the undisputed leader, cementing its role as Europe’s premier data center hub.
Berlin, however, is rapidly gaining ground. It currently boasts 92 MW in operational capacity, and its ambitious expansion plans signal substantial growth. Frankfurt is preparing for a potential 124% increase in capacity, with 542 MW under construction and 383 MW in planning.
Berlin, in contrast, is charting an even more aggressive trajectory: with 76 MW under construction and 219 MW in planning, it is set for a 321% increase—more than triple its current capacity. These figures from the German Datacenter Outlook 2024/25 highlight Berlin’s emergence as a high-potential growth location while Frankfurt strengthens its position as a central digital hub. Together, these cities are shaping the strategic future of Germany’s data center market.
New Players in Germany’s Data Center Market
Delos Cloud – A Public Sector Cloud Initiative
In 2022, SAP and Arvato Systems joined forces to create a cloud platform tailored for German ministries and public authorities. Core principles: data protection and processing exclusively within Germany. Arvato Systems was chosen for its expertise in managing large-scale infrastructure. The result is Delos Cloud, launched in partnership with Microsoft from the outset.
Delos Cloud promises:
According to the company, initial services—including Microsoft Office 365—will be available for evaluation in 2025.
However, Delos Cloud is more of a pragmatic interim solution than a fully sovereign cloud. Several critical challenges remain unresolved. None of the involved companies operate their own cloud infrastructure, and Microsoft has been under scrutiny for major security issues. Data protection concerns also persist, with Germany’s Data Protection Conference (DSK) questioning the fundamental compliance of Microsoft 365 with national privacy laws. Furthermore, Delos Cloud services are expected to cost about 15% more than Microsoft’s public cloud—though achieving digital sovereignty for free would be unrealistic.
Schwarz Group and the Rise of Schwarz Digits
The Schwarz Group—initially developing its cloud platform for internal use—began offering it to external clients in 2022. Its focus is on privacy and digital sovereignty, targeting niche sectors such as public administration and heavily regulated industries like banking. IONOS, a well-established provider, operates in a similar space.
Notable Schwarz Digits clients include Siemens, Zeiss, and the state-owned L-Bank. Their cloud services portfolio includes: SAP’s extensive software suite, AI technology from Heidelberg-based startup Aleph Alpha, Government software Opendesk.
More recently, Schwarz partnered with Google. Its subsidiary Schwarz Digits now offers Google Workspace for the digital workplace from its own cloud infrastructure—an attempt to challenge Microsoft’s dominance in office applications.
