The Germany data center hardware market was estimated at USD 4,068.1 million in 2025 and is forecasted to reach USD 5,346.6 billion in 2028, growing at a CAGR of 9.5% over the forecast period.
Germany offers diverse advantages for the data center market compared to its European counterparts such as presence of nearly 2000 data centers with a combined capacity of over 2700 megawatts, fuelled by extensive technological innovation, industrial development, booming digital economy and growth opportunities for establishing green data centers with emphasis on sustainability, leading to demand for storage, servers and allied networking equipment in the German data center market and eventually posing Germany as one of the largest digital infrastructures hubs in Europe.
Frankfurt is designated as the prime data center hub in Germany as it hosts approximately 78% of massive facilities due to its robust infrastructure and proximity to DE-CIX, one of the world's largest Internet exchange points. Secondary cities like Berlin and Munich are also emerging as attractive alternatives for data centre development owing to their low real estate costs and access to diverse renewable energy, primarily wind power from Brandenburg. Leading data center operators such as Global Switch, Digital Realty, NTT Ltd, Equinix, CyrusOne, and Vantage Data Centers have presence in the country and are driving the market for data center hardware and associated equipment in Germany with prospects to increase market expansion causing increment in the demand for hardware solutions related to data centers in Germany. Moreover, the increasing shift towards AI-driven applications across industrial domains, primarily across automotive, aerospace, manufacturing and allied sectors in Germany, drives the demand for hyperscale and colocation data centres in the country, leading to a market boost.
Initiatives such as the strategic phasing-out nuclear energy and harnessing renewable energy sources such as wind and solar with mandated targets of 50% renewable energy from 2024 and 100% by 2027 supported by the adoption of the regulations like German Energy Efficiency Act and initiatives such as the “Pact for Climate-Neutral Data Centers” are paving the way for a more responsible data center industry in the country. For instance, the Energy Efficiency Act mandates stringent decarbonisation targets and the adoption of renewable energy sources for powering data centre facilities, thus causing a significant reduction in carbon footprints across data centres and eventually creating opportunities for the development of green data centres in the country.
Additionally, the presence of five international Internet exchange points in the country (Frankfurt am Main, Hamburg, Berlin, Munich, Ruhr district), acts as significant drivers towards boosting data center growth as they facilitate easy data traffic handling, providing low-latency connectivity to operators and foster cloud service expansion in the country, leading to the influx of major data center service providers to expand market base in the country, causing growth in demand for high-performance data center servers, storage, and related networking equipment in Germany.
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