Data centres are the foundation of digital value creation in Frankfurt and the entire Rhine-Main region. The new study by IW and Detecon provides clear figures and shows that, in contrast to the economy as a whole, the industry is recording record growth. The city and the entire Rhine-Main region also benefit significantly from this.
The GDP of the data centre industry has doubled in the Frankfurt-Rhine-Main region over the past five years (see IW Consult 2025: 8). Growth in the Main metropolis itself reached almost 90 per cent. By comparison, the overall economy of Frankfurt and the region grew by only around 16 per cent. The study’s authors also predict great success for the next five years: the industry’s GDP is expected to grow by 175 per cent in Frankfurt-Rhine-Main and by 53 per cent in the city of Frankfurt.
Every euro generated in data centres triggers a further 51 cents in economic output – 24 cents of which are directly in the region. Added to this are tax revenues: in 2023, the industry as a whole was responsible for tax revenues of €405 million. Of this, €287 million went directly to the industry and a further €117 million to suppliers. According to the estimation model, around ten per cent of tax revenues remain in the local municipalities, largely through trade taxes.
Data centre users are rewarded with higher revenues
User industries also benefit: as the study correctly points out, companies with high data centres are more innovative, productive and have stronger growth than those that do not use data centres (see IW Consult 2025: 121). Here, too, the figures speak for themselves: “Across Germany, data centre users were able to generate around 18 per cent of their turnover in 2023 with new products or services that did not exist before. For companies that do not use data centre infrastructure, this figure was only just under 8 per cent – less than half” (ibid.: 5; IW Consult 2024). The IW already gained this insight from a previous study commissioned in 2024 by eco and the Alliance for the Strengthening of Digital Infrastructures in Germany, which was founded under the umbrella of the association.
Both studies address the enormous spillover effects of data centres in this context. According to the IW, “at least six million employees across Germany work in companies whose business model would not be possible without cloud usage” (IW Consult 2025: 12).
As the study by Arthur D. Little, eco and the Alliance published in September of this year also illustrates that artificial intelligence is further driving these effects and causing demand for computing power and fast networks to surge.
According to the authors of the current IW study, the Frankfurt-Rhine-Main region “plays a central role nationwide in enabling this digital transformation throughout Germany by providing high-performance digital infrastructures” (ibid.).
This also reflects the key findings of the study published this year by the Frankfurt Internet Exchange DE-CIX: the existing infrastructure density in Frankfurt has a strong pull effect on domestic and international companies, which invest at least two billion euros annually in the digital infrastructure of the Main metropolis – in addition to the direct value contribution of more than 300 million euros that DE-CIX Frankfurt alone brings to the Hessian economy (see D-Stream Group 2025: 63f.).
Push and pull effects of Frankfurt’s data centre industry
“In addition to the strengths of Frankfurt and the entire Rhine-Main region (including proximity to DE-CIX, a good network infrastructure and data gravity, as well as a secure and stable power supply), the new IW study bluntly states what operators have been experiencing for years: short-term available additional power capacity on a large scale, high energy costs, lengthy approval processes, regulatory uncertainty and scare land for building new data centres. This complex situation is leading to deteriorating conditions for operators throughout Germany and the Frankfurt region,” says Dr. Béla Waldhauser, Spokesperson for the Alliance for the Strengthening of Digital Infrastructures in Germany.
This finding is, unfortunately, not new. “For years, operators within the digital infrastructure ecosystem have been pointing out these shortcomings to policymakers and local authorities through industry initiatives such as the eco Alliance. The consequences of further deterioration are therefore well known: there is a threat of migration to other European countries, especially Scandinavian countries, where particularly relevant location factors such as energy prices, available land and power connections for data centres are particularly attractive.
“As far as the problems for operators in this country are concerned, all study results and opinions of industry experts agree. The problem areas are clearly evident, and now concrete solutions are needed. This can only be achieved through close cooperation between operators, policymakers and municipalities.
“My urgent appeal: Germany, and above all Frankfurt as the digital capital, cannot afford to weaken the foundation of its digital economy. We need to ensure affordable, base-load-capable electricity for data centres as well as plannable land and network capacities. In addition, we need accelerated and reliable approval procedures instead of regulatory hurdles, and a clear political commitment to digital infrastructure as a strategic future task for Frankfurt and the entire Rhine-Main region,” Waldhauser demands.
