- No digital transformation without data centres
- eco formulates 5 core demands for data centre strategy (in German-language)
- Strategy must take different business models into account
- Revise energy efficiency requirements and ensure competitive power supply
The role of data centres for Germany as a business location is becoming increasingly important, not least due to the growing demand for computing power for AI. Already in 2023, data centre usage resulted in additional gross value added of around 250 billion Euro for the German economy.[1] For research and application scenarios in the field of artificial intelligence, a functioning ecosystem of digital infrastructures, consisting of data centres, colocation and cloud providers as well as Internet exchange points is essential. Germany’s share of global IT capacity has declined significantly over the past 10 years. Between 2015 and 2024, the share of servers installed in data centres in Germany fell from 3.5 per cent to just under 2.5 per cent of the global market. “The government must therefore now show, through concrete deregulation and relief measures, that it is serious about strengthening Germany as a location – because those who don’t credibly support normal data centres shouldn’t even start with gigafactories,” says Dr. Béla Waldhauser, Spokesperson for the Alliance for the Strengthening of Digital Infrastructures in Germany, founded under the umbrella of the eco – Association of the Internet Industry. It is necessary to create positive framework conditions for the establishment of data centres. The German federal government has therefore announced a data centre strategy.
“A stable investment foundation requires a data centre strategy that guarantees clear and attractive conditions, particularly with regard to energy supply, infrastructure and uniform regulatory requirements, as well as the acceleration of planning and approval processes. At the same time, such a data centre strategy must clearly distinguish between the requirements of cloud services, which, although based on data centre infrastructure, primarily focus on data sovereignty, interoperability and market access,” says Waldhauser.
eco has formulated five core demands for a German federal government data centre strategy:
Specifically, eco calls on the German federal government to take into account the various existing business and operating models in the data centre industry. “One size does not fit all here,” says Waldhauser. “Depending on the business model, location factors, security requirements and the influenceability of IT components can vary significantly. It is therefore crucial to take different operating characteristics into account when developing a comprehensive data centre strategy.”
From the association’s perspective, a revision of the existing regulatory framework regarding energy efficiency and waste heat utilisation is also central. This should be oriented toward existing EU standards and evaluated promptly together with the industry.
Third, the federal government must advance integrated infrastructure planning that meaningfully integrates data centres into electricity and heating networks. Close coordination with municipal heat planning is also of immense importance here.
Fourth, eco calls for an acceleration of approval procedures, including land use planning and environmental permits for data centres.
From the association’s perspective, supplying data centres with affordable and base-load capable electricity is also central. Electricity prices in Germany must be competitively designed in international comparison. This means that state aid regulations must be revised to enable relief measures. On the other hand, access to power grid connection capacity must also be ensured.
“Data centres are the foundation for digital performance and digital sovereignty, as well as for Germany as a competitive and resilient business location. A data centre strategy of the German federal government should therefore be developed in dialogue with the industry and in close cooperation with the federal states and municipalities, consistently removing existing barriers and competitive disadvantages and sustainably strengthening the data centre industry in Germany,” says Dr. Béla Waldhauser.
About eco
With approximately 1,000 member companies, eco (international.eco.de) is the leading Association of the Internet Industry in Europe. Since 1995, eco has been highly instrumental in shaping the Internet, fostering new technologies, forming framework conditions, and representing the interests of its members in politics and international forums. eco has offices based in Cologne, Berlin and Brussels. In its work, eco primarily advocates for a high-performance, reliable and trustworthy ecosystem of digital infrastructures and services and has stood for a responsible Internet for 30 years.
About the Alliance for the Strengthening of Digital Infrastructures in Germany
The Alliance for the Strengthening of Digital Infrastructures in Germany is an association of leading companies in the industry. Founded in 2018 under the umbrella of eco – Association of the Internet Industry, the initiative aims to draw attention to the importance of digital infrastructures for Germany as a business location through dialogue with policymakers and the public.
Press contact
Sidonie Krug, eco – Association of the Internet Industry, Französische Strasse 48, 10117 Berlin, Germany, Mobile: +49 (0)160 96913493, email: sidonie.krug@eco.de
[1] IW Consult (2024), Spillover effects of data centres: Backbone of the AI revolution in Germany
