Creating the Foundations for a Future-Proof Germany

NDC-GARBE 28/02/2025

The rapid digitalization and advancements in artificial intelligence (AI) over the past few years have led to a significant increase in demand for data centers. However, the German market is struggling to keep pace with this growth due to a lack of essential infrastructure. In an international comparison, Germany continues to lose ground. To secure a future-proof economy and society, the country must strengthen its position and remain competitive in the AI era.

Data Centers: Key Technologies of the Future

As the backbone of digitalization, data centers play a crucial role in today’s world. Industry association Bitkom even identifies them as one of the key technologies necessary for positioning Germany as a forward-looking economic powerhouse.

According to a study by McKinsey, the demand for data centers in Europe is expected to grow from 10 to 35 gigawatts over the next five years. As a result, energy consumption is likely to triple. Within the next six years, data centers will account for five percent of Europe’s total energy consumption—up from just two percent today. This development presents both opportunities and challenges for companies in the industry. On the one hand, the growing demand for data centers offers significant future potential. On the other hand, the lack of structural prerequisites in the German market makes the necessary scaling difficult.

Laying the Groundwork

There is no question that demand for computing capacity in Germany is on the rise. To meet this growing need, several structural changes are required.

First and foremost, Germany must ensure a stable energy supply—at competitive prices. Power grids in Tier-2 locations must be upgraded to enable scaling, as this is the only way to unlock new geographical regions for data center construction.

Additionally, reducing bureaucracy and accelerating approval processes must become a priority. In Germany, the approval process for building data centers can unnecessarily prolong the planning phase. However, statistics show that Germany needs to triple its data center capacity within just five years. This goal will be unattainable without streamlining bureaucratic procedures.

Finally, active public engagement is essential to familiarize local communities and decision-makers with the role of data centers. The saying “It takes a village” is particularly relevant here: the success of data center planning and construction heavily depends on the support of local municipalities. Transparent communication about the benefits and potential concerns of data centers can help dispel misconceptions and secure public backing.

Preparing for the Future of the Data Center Industry

A shortage of data centers would threaten Germany’s digital sovereignty and hinder economic progress. To safeguard the country’s digital future, data center capacity must be expanded—quickly and efficiently.

At NDC-GARBE, we are here to support you through these exciting yet challenging times. We assist you in planning and constructing flexible, sustainable data centers, ensuring that you are well-prepared for the growing demand. Our goal is to contribute to a high-performance, resource-efficient, and reliable infrastructure—laying the foundation for an AI-powered digital future.