DCPulse has released its latest report, “Germany Data Center Colocation Market Size, Share and Trends, 2025–2028”, which provides a comprehensive analysis of the country’s colocation industry, growth drivers, challenges, and future outlook. Recognized as the digital backbone of Central Europe, Germany’s data center colocation market continues to attract major global and regional operators, enterprises, and hyperscalers seeking resilient and scalable digital infrastructure.
Market Size & Projected Growth
As per DCPulse, the Germany data center colocation market was valued at USD 1,842.4 million in 2024 and is projected to grow from USD 2,176.2 million in 2025 to USD 3,443.9 million by 2028, expanding at a CAGR of 16.5% during the forecast period (2025–2028).
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Descriptive Analysis of Growth Drivers
According to analysts at DCPulse, the following factors are fueling the market’s rapid expansion:
Connectivity Strength: Germany is home to DE-CIX, the largest internet exchange in Europe, which handled 68 exabytes of traffic in 2024, ensuring resilient global interconnectivity.
Frankfurt’s Dominance: As highlighted in the DCPulse report, nearly 85% of Germany’s colocation capacity in 2024 was concentrated in Frankfurt, attributed to its thriving financial ecosystem, digital media presence, and dense network infrastructure.
Supportive Policy Environment: DCPulse emphasizes that stringent data protection laws, ambitious sustainability commitments, and regulatory clarity enhance investor confidence.
Urban Development Plans: The report highlights how Germany’s master plans including those for Frankfurt, Berlin, and Hamburg enable structured development of data center colocation zones.
Enterprise & Hyperscale Demand: DCPulse notes that rising demand from AI, IoT, and cloud computing workloads is driving significant colocation adoption.
Key Competitors in the Germany Colocation Market
Equinix
Digital Realty
NTT
Telehouse
Other expanding international and domestic colocation operators
Market Segmentation
By Location
Frankfurt (primary hub)
Berlin
Hamburg
Other secondary German cities
By End-User
Enterprises
Cloud service providers
Hyperscalers
Content/media companies
Financial services
By Service Type
Retail colocation
Wholesale colocation
Emerging Trends & Innovations
AI & Hyperscale Workloads: Demand for high-capacity, low-latency environments is rising rapidly.
Sustainability Focus: Operators are aligning with the EU Green Deal and Climate Neutral Data Center Pact to balance capacity with environmental goals.
Strategic Investments: Expansion of new colocation sites by global leaders to serve rising computing and storage needs.
Polycentric Development: Growth of secondary cities beyond Frankfurt to diversify capacity and reduce congestion.
Regional Insights
Frankfurt: Core hub with unmatched connectivity and financial sector demand.
Berlin & Hamburg: Emerging zones supported by urban planning and strategic expansion.
Rest of Germany: Moderate but growing demand, supported by distributed enterprise adoption.
