Key Developments for Data Centers in 2025
NDC-GARBE 02/03/2025
The new year is well underway, and the rapid evolution of the data center industry highlights the trends that will shape 2025. Herbert Radlinger, Managing Director of NDC-GARBE, identifies three key factors that will be crucial for the future of data centers:
- Ensuring Energy Supply and Availability for Data Centers: To guarantee a stable energy supply for data centers in the future, investments in power grids, sustainable energy sources, storage solutions, and backup power systems are essential. This includes gas power plants today and, potentially, hydrogen-based solutions in the future. Only by accelerating the expansion of renewable energy can large-scale data centers be built and operated efficiently, ensuring the industry remains globally competitive.
- Expanding Data Center Locations: According to NDC-GARBE figures, approximately 25 to 30 percent of all globally stored industrial data is generated in Germany. To drive digitalization and AI adoption further, more data centers will be needed. However, this requires suitable sites beyond the established Tier-1 locations—Frankfurt, London, Amsterdam, Paris, and Dublin. A key factor in selecting new data center locations is the availability of reliable infrastructure, including high-speed internet, gas, electricity, and water.
- Rising Data Center Demand Due to AI: AI is another major driver of growth in the data center sector. However, the question remains: how sustainable is this expected growth? AI data centers require massive amounts of energy—often exceeding 500 megawatts, sometimes even reaching 1 gigawatt. But where will this energy come from? If Germany wants to avoid reigniting the debate on nuclear power, the only viable solution is a strong commitment to renewable energy.
The Backbone of Digitalization
Data centers are indispensable for a digital society—both in private life and in business. As part of critical infrastructure, they require careful planning and substantial investment. To remain competitive on a global scale, Germany must make significantly faster progress toward becoming a data-driven economy in 2025.