12€ billion boom thanks to AI: Expansion of data centers continues to boom but concerns about US dominance linger

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AI is driving growth of data centers in Germany, with 12 billion euros in investments expected in 2025. (Image source: Pexels, panumas nikhomkhai)Artificial intelligence (AI) is the key factor behind the current boom of German data centers. According to a recent market analysis by digital association Bitkom, installed capacity will increase by a full 70% by 2030. The capacity exclusively used for AI applications is expected to quadruple from 530 megawatts to over 2,000 megawatts.

Despite dynamic development, which has been the result of record investments of €12 billion annually in IT hardware, the industry is warning of a dangerous dependency.

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Bitkom CEO sounds the alarm: Germany risks becoming a “data colony”
Dr. Bernhard Rohleder, CEO of Bitkom, is sounding the alarm: “Without data centers, there is no AI. This is where it will be decided whether Germany becomes a data colony or remains a sovereign nation in the digital age”.

The reason for this warning is the massive lead of international competitors. In 2024, the USA already had 16 times more data center capacity than Germany planned to install in 2025. The ten most powerful US data centers alone exceed the combined capacity of all 2,000 German locations. To counteract this, Rohleder demands that policymakers immediately and radically lower investment barriers.

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High electricity prices and slow procedures are obstacles
The growth of digital infrastructure goes hand in hand with rising energy demand. Electricity consumption is projected to reach 21.3 billion kilowatt-hours in 2025.

Bitkom sees several regulatory hurdles that are slowing down rapid expansion:

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Competitive energy prices are essential, as German electricity costs are extremely high compared to other European countries.Accelerated approvals: Planning and approval procedures take significantly longer in Germany than the EU average.Better use of waste heat must be promoted through tax incentives and improved municipal heat planning.Market leader Frankfurt continues to dominate
Data center capacity is distributed very unevenly across regions: Frankfurt (Hesse) continues to dominate with a good 1,100 megawatts, accounting for over a third of total capacity.

But new, large-scale projects in other federal states are shifting the focus:

In the north, a megaproject of 1,000 megawatts is under discussion in Dummerstorf (Mecklenburg-Western Pomerania).The Berlin-Brandenburg region is developing into the second major hub with 888 megawatts currently in the planning stages.Rohleder stresses the need to include data centers as a key location factor in regional strategies. He urges the federal government to quickly present its announced data center strategy in order to lay the foundation for the digital ecosystem of the future.
 

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Editor of the original article: Ronald Matta – Senior Editor News – 14381 articles published on Notebookcheck since 2007

I have been an editor at Notebookcheck since 2007. As a freelance writer, I have also written for other print and online media, including contributing to the local press. Before becoming a journalist, I worked as a trained network technician in the planning and development of corporate networks, among other things, and as a fashion photographer based in Milan. As a former competitive athlete, my passion for technology and science is complemented by a passion for all kinds of outdoor sports. When it comes to specific subjects, I’m particularly interested in video, photography, smart homes, and wearables.

Translator: Jacob Fisher – Translator – 2537 articles published on Notebookcheck since 2022

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Growing up in regional Australia, I first became acquainted with computers in my early teens after a broken leg from a football (soccer) match temporarily condemned me to a predominately indoor lifestyle. Soon afterwards I was building my own systems. Now I live in Germany, having moved here in 2014, where I study philosophy and anthropology. I am particularly fascinated by how computer technology has fundamentally and dramatically reshaped human culture, and how it continues to do so.

Ronald Matta, 2025-11-10 (Update: 2025-11-10)

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