AI Sparks Rapid Expansion of German Data Centers with Record Investments

Artificial intelligence (AI) is significantly driving the expansion of data centers in Germany, with installed capacity expected to jump from nearly 3,000 megawatts (MW) in 2025 to over 5,000 MW by 2030, according to industry association Bitkom. This growth represents an approximate 70% increase, with AI-specific data center capacity set to quadruple from 530 MW to 2,020 MW in the same period, reaching 40% of total capacity.

Presently, Germany operates around 2,000 data centers with a minimum capacity of 100 kilowatts (kW), including 100 large facilities exceeding 5 MW each. Frankfurt emerges as the dominant hub, hosting over 1,100 MW of capacity, followed by Bavaria and North Rhine-Westphalia. New large-scale projects are underway in Frankfurt, Brandenburg, and potentially Mecklenburg-Vorpommern.

Investments have surged to a record €12 billion in IT hardware and an additional €3.5 billion in buildings and technical equipment this year, underscoring the priority placed on expanding and modernizing infrastructure to support the digital economy and AI workloads.

Despite this momentum, Germany lags behind global leaders. The United States, for example, has ten times the data center capacity Germany aims for by 2030 and constructs more than four times Germany's total capacity annually. Bitkom CEO Dr. Bernhard Rohleder highlights the need for improving regulatory conditions and expediting planning processes to enhance Germany's digital sovereignty and competitive positioning.

Energy consumption by data centers is also rising, with projections of 21.3 billion kilowatt-hours in 2025, though increased energy efficiency has been achieved in recent years. The shift toward cloud infrastructures is notable, with cloud capacity now comprising 49% of total data center capacity, up from 29% in 2019, while traditional data centers decline.

Bitkom calls for integrating data center development into regional strategies to attract tech businesses and boost local economies, particularly emphasizing the importance of the Hessen cluster. Efficient infrastructure and supportive policies are deemed critical for Germany to maintain and grow its standing in the global digital landscape amid skyrocketing AI demand.