The Alliance for the Strengthening of Digital Infrastructures in Germany, an initiative founded within the eco Association by operators of digital infrastructure ecosystems, welcomes the data centre strategy announced today for the German federal state of Hesse and calls for a similar approach at the federal level to strengthen Germany as a data centre location.
Such a nationwide strategy should also address the most pressing problems faced by operators: high electricity prices and electricity availability.
The German federal state of Hesse announced the process for a state-wide data centre strategy today on the sidelines of a meeting between its Digital Minister Kristina Sinemus and the German Federal Digital Minister Karsten Wildberger. The Alliance for the Strengthening of Digital Infrastructures in Germany welcomes this initiative and particularly welcomes the planned exchange between politicians and industry. âHesse recognised early on that data centres offer the potential for an economic boom,â says Volker Ludwig, co-spokesperson for the initiative founded by the Association of the Internet Industry.
Many data centre operators in the eco Alliance are located in the Frankfurt area. In addition, the Main metropolis ranks first in a ranking of global digital locations recently published by Internet Exchange operator DE-CIX. In the data centres category, Frankfurt ranks second behind the Washington D.C. region.[1]
âDigital infrastructures, and data centres in particular, play a central role as drivers of digital transformation and Germanyâs competitiveness in innovative technologies such as AI, as they provide the necessary computing power, data processing and networking,â says Ludwig. This is demonstrated, among other things, by a recent study conducted by the German Economic Institute (IW) for Allianz. According to the study, cloud computing and data centres act as drivers for innovation and growth. The use of data centres generates additional gross value added of around 250 billion Euro for the German economy.[2]
Coalition targets for data centres to be met
It is now up to the newly established Ministry of Digitalisation to leverage this potential by creating the necessary overarching framework conditions. Volker Ludwig believes that competitive electricity prices are a key factor in this regard. âIn addition to sustainability aspects, the urgent issues of electricity availability and price, as well as building approval processes, should be considered for the economic efficiency of data centres,â says Ludwig. âGermanyâs economy needs a success story, and that can only come from data centres. Industry initiatives and associations must be involved in the German federal governmentâs data centre strategy.â In addition to Frankfurt, other German cities and rural regions could also benefit from the appeal of data centres for AI and the economy.
[1] See Serge Radovcic, Paul Rendek, Judith Ellis & Nils Klute (2025): Frankfurt: The Digital Capital Internet Exchanges as a success factor for digital ecosystems & economies. A study by Dstream Group. https://www.de-cix.net/en/about-de-cix/news/new-study-the-digital-capital-frankfurt
[2] See Dr Henry Goecke et al. (2024): Spillover Effects of Data Centres: The Backbone of the AI Revolution in Germany. A study by the German Economic Institute commissioned by the eco-founded Alliance for the Strengthening of Digital Infrastructures in Germany. https://international.eco.de/spillover-effects-of-data-centres-the-backbone-of-the-ai-revolution-in-germany/
