Schleswig-Holstein Sees Record Business Growth in 2025, But Trust Issues Slow Tech Adoption

In 2025, Schleswig-Holstein experienced a remarkable rise in business activity with 96 new companies establishing themselves in the state, marking a 33% increase from the previous year. This surge is expected to generate around 1,200 new jobs, notably in the renewable energy sector, reflecting the region's strategic advantages. Economic Minister Claus Ruhe Madsen emphasized Schleswig-Holstein’s strong renewable energy supply and well-developed infrastructure as key factors attracting companies. Among the expansions, battery manufacturer UniverCell is growing its operations in Kiel, benefiting from the local skilled workforce and proximity to existing facilities.

The state supported 595 companies with €226 million in funding in 2025, contributing to the creation or retention of more than 20,000 jobs overall. However, opposition parties such as the FDP and SPD criticized the government's efforts as insufficient, pointing to issues concerning land availability, planning, and startup support. The SPD cautioned that the new employment figures might not fully represent actual job gains, suggesting the region’s growth may not yet compensate for previous declines.

Despite this economic upswing, a significant challenge remains in the adoption of digital technologies. A survey among IT decision-makers highlighted a trust gap that is hindering the broad use of artificial intelligence (AI) in enterprises. Many respondents called for accelerated development of sovereign cloud infrastructures in Europe, which are considered vital to bolster trust and acceptance of AI systems within businesses.

Schleswig-Holstein thus stands at an important juncture: while business growth, especially in renewable energy, is robust and supported by government funding, addressing technological trust issues remains crucial for sustaining and expanding the region’s economic potential in the digital age.