- High-performance data infrastructures are the backbone of digital transformation and the foundation for future technologies.
- Data centres boost innovation – gross value added by data centre usage exceeds 250 billion Euro.
- Politicians and administrations must create better location conditions for data centres in Germany.
At the start of this year’s Digital Summit of the German federal government, Oliver Süme, Chair of the Board of the eco – Association of the Internet Industry, stated: “Frankfurt, as the ‘City of Data’ and home to the largest Europe’s Internet Exchange, DE-CIX, as well as numerous data centres, is the heart of Germany’s Internet infrastructure. With around 50 data centres, the metropolitan region already plays a prominent role in global data traffic. It is only fitting that the 2024 Digital Summit is taking place here – at a location that is of central importance for the future of digital infrastructures, and that once again underscores the key role that the digital economy plays in shaping the future of our country.”
Exponential data growth requires scalable data centres
A high-performance and sovereign data infrastructure, along with a functioning ecosystem of digital infrastructures, is the backbone of digital transformation and the foundation for the implementation of future technologies such as artificial intelligence (AI), emphasises Süme: “By 2035, global data volume will reach 2,142 zettabytes by 2035, and around 402 million terabytes of data are already being produced every day[1]– a volume that cannot be managed without high-performance, resilient and scalable data centres, especially with regard to future technologies such as AI, augmented reality and quantum computing. This development is not only a technological challenge, but also offers enormous economic potential. In particular, the digitalisation of the economy and administration is opening up opportunities that are far from being exploited. AI has the potential to significantly boost productivity growth and promote new business models, as the joint study by eco Association and Arthur D. Little, ‘Artificial Intelligence: Potential and Sustainable Change in the German Economy’, shows.[2]
“Data centres are the backbone of this transformation, ensuring that data is stored and processed securely and efficiently. This is especially true for AI models, because they are based on enormous amounts of data, the processing and analysis of which requires a robust and high-performance data centre infrastructure. Without these capacities, Germany’s innovative strength and competitiveness would be severely compromised.”
Study shows: data centres are drivers of innovation
This is also confirmed by a recently published study by the German Economic Institute on behalf of the Alliance for the Strengthening of Digital Infrastructures in Germany: According to the study, in 2023, companies without data centre infrastructure generated only eight per cent of their revenue through new products or services. In contrast, companies utilising data centres generated 18 per cent of their sales in 2023 with new products or services.[3] Extrapolated, this results in an additional gross value added of over 250 billion Euro through data centre usage.
“For Germany as a business location, whose success is largely based on the innovative strength of its companies, data centres are a driver of competitiveness and future viability. Politicians and administrations must therefore support the industry more decisively and create better conditions for data centres in Germany,” Süme goes on to say.
You can find the complete study “Spillover Effects of Data Centres: The Backbone of the AI Revolution in Germany” here.
The study was conducted by the German Economic Institute on behalf of the Alliance for the Strengthening of Digital Infrastructures in Germany, founded under the umbrella of eco.
[1] https://international.eco.de/artificial-intelligence-its-potential-and-the-lasting-transformation-of-the-german-economy/
[2] Ibid
[3] https://international.eco.de/spillover-effects-of-data-centres-the-backbone-of-the-ai-revolution-in-germany/
