Chair of the Board Süme: “Without decisive political action, the growth boom could fizzle out.”
- Internet industry: Around 10 per cent annual growth rate until 2030
- Strongest industry segment: Digital transaction and platform models generate almost 40 per cent of revenues
- Supply gap: IT connection capacity of data centres in Germany will rise by around 50 per cent by 2030 – but demand will be three times higher
- Politicians must ensure access to affordable base-load electricity and continue to drive investment in digital infrastructure
- eco calls for synchronisation of data centre strategies at the German federal government and state level in consultation with industry
The German Internet industry remains a growth driver, but risks faltering due to political shortcomings. According to a German study by Arthur D. Little on behalf of eco – Association of the Internet Industry, revenues will rise from €245 billion in 2025 to €389 billion by 2030 – an annual increase of almost ten per cent. The drivers are digital platform and transaction models, which already account for almost 40 per cent of revenues today. Yet despite this dynamic development, eco warns of structural deficits: a lack of data centre capacities and poorly developed telecommunications networks could derail this growth trajectory.
“Without decisive political action, the growth boom could fizzle out,” warns eco Chair Oliver Süme. “The study shows that we are heading for a massive supply gap, particularly in the area of digital infrastructure, over the next five years. AI and automation are causing demand for computing power and fast networks to explode. However, the current conditions in Germany don’t allow us to make the corresponding capacities available to the market in time.” According to Süme, this is also due to political failures. “If we don’t manage to scale AI solutions made in Germany quickly, we will fall behind in international competition,” Süme continues.
Infrastructure gaps in fixed networks, hesitant digitalisation in SMEs and a lack of platform competence are preventing the transition to scaling
The causes are home-grown: sluggish fibre rollout, hesitant digitalisation in SMEs and a lack of platform competence are preventing the transition to scaling. “Germany’s digital competitiveness is deeply rooted in industry, but it is neither broad enough nor globally visible,” criticises Arthur D. Little partner Lars Riegel.
IT connection capacity of data centres in Germany will increase by around 50% to 3.7 GW by 2030 – but demand will be at least three times higher
While demand for computing power and networks is exploding, there is a lack of capacity and political support. “The connection capacity of German data centres will grow by 50 per cent to 3.7 gigawatts by 2030, but the industry expects at least triple the demand,” says Arthur D. Little partner Dr. Nejc Jakopin. For comparison: The USA is already at 20 times that level today.
Politicians must ensure access to affordable base-load electricity and continue to drive investment in digital infrastructure
However, whether the domestic market can achieve such an ambitious tripling scenario depends largely on whether the corresponding infrastructural, regulatory and energy-related challenges are successfully mastered. “Without affordable, base-load electricity, faster approvals and investments in digital infrastructure, the industry risks suffocating from locational disadvantages. Data centres must absolutely be recognised as systemically relevant and included in electricity price compensation,” demands Dr. Béla Waldhauser, Spokesperson for the eco Alliance for the Strengthening of Digital Infrastructures in Germany.
“If industry, investors and politicians succeed in consistently activating these levers, data centres and telecommunications networks can fully play their role as the heart and circulatory system of the digital economy – and secure the predicted growth of the Internet industry until 2030 in a sustainable way,” says eco Chair of the Board Süme.
From the association’s perspective, close strategic synchronisation of measures at municipal, state and federal levels, in dialogue with industry, is essential to give Germany the necessary boost as a data centre location. eco therefore calls for close dialogue between the relevant state and federal ministries in the course of the ongoing development of data centre strategies. In particular, for the state of Hesse – home to DE-CIX, Europe’s largest Internet exchange – such coordination could send a strong signal for the rest of the country.
Voices from the Internet industry:
Quote from Volker Ludwig, SVP and Managing Director DACH at Digital Realty
“Germany is facing a historic opportunity: AI can massively accelerate our growth and innovative strength. But to this, we need internationally competitive data centres in the long term – and these will only emerge if we eliminate the location disadvantages. Now is the time to act to set the course for digital sovereignty and Germany as an AI location.”
Quote from Timo von Lepel, Managing Director of NetCologne
“The study shows the importance of the Internet industry for Germany’s economic strength and our future growth. We can only leverage this potential with the best digital infrastructure: a mix of fibre optic and data centres made in Germany. From an economic perspective, we must now tackle the switch from copper to fibre. For faster expansion and greater digital sovereignty.”
