The Germany data center colocation market was valued at USD 1,842.4 million in 2024 and is estimated to grow from USD 2,176.2 million in 2025 to USD 3,443.9 million by 2028, at a CAGR of 16.5% over the forecast period (2025–2028).
Germany is designated as a prime data center colocation market in Europe owing to its strong connectivity, favorable business climate, and its critical role as digital backbone of central Europe. The presence of scalable digital infrastructure, stringent data protection laws, sustainability commitments, and robust network connectivity, drive the market growth and development of Germany data center colocation market. The market’s resilience is further strengthened by the Germany’s polycentric economic structure, with almost 85% of data center capacity located in Frankfurt in 2024 (as reported by JLL) which is attributed majorly to the presence of widespread network connectivity solutions and a thriving digital media and financial ecosystem, making Frankfurt a preferred destination for data center colocation development, consequently driving market expansion.
The presence of DE-CIX internet exchange, which is considered the largest in Europe, provides Germany with resilient access to international networks, thus enabling seamless data transfer and connectivity between Germany and the rest of the world. The DE-CIX alone handled 68 exabytes of traffic in 2024 alone, showcasing decent market development prospects for data center colocation in the country.
Moreover, the urban zoning master plans of Germany, such as the Frankfurt Master Plan, Berlin Master Plan, Hamburg HafenCity Master Plan and many others contribute towards the development of data center colocation sites in Germany. Players like Equinix, Digital Realty, NTT, Telehouse and many others are expanding the presence in the German data center colocation market by fusing investments in the development of new colocation sites to cater the rising demands of data processing and storge in the country.
Overall, the colocation data center market of Germany is positioned for steady growth, supported by strong enterprise demand, regulatory clarity, and investor appetite for resilient digital infrastructure. Colocation operators are balancing sustainability imperatives with the capacity demands of AI, IoT, and hyperscale workloads to maintain their competitive edge in this dynamic data center landscape of the country.
Challenges such as limited land and power, local regulations and the necessity for grid upgrades continue to hinder growth of colocation data centers in Germany. However, strategic-positioning, rising computing demand and boom of AI workloads along with rising remote data storage and processing requirements, fuel the expansion of data center colocation market in the country with growth driven primarily by innovation, strong investor interest, and ambitious sustainability goals aligned with the EU Green Deal and the Climate Neutral Data Center Pact.
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