Frankfurt Data Center Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Volume (2025) | 1.30 Thousand megawatt |
| Market Volume (2030) | 1.8 Thousand megawatt |
| Growth Rate (2025 - 2030) | 6.78% CAGR |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Frankfurt Data Center Market Analysis by Mordor Intelligence
The Frankfurt data center market reached 1.30 thousand MW operational IT load in 2025 and is on track to expand to 1.80 thousand MW by 2030, translating into a 6.78% CAGR over the forecast period. At this pace, the hub strengthens its position as Europe’s second-largest data center cluster, supported by 745 MW live capacity, 542 MW under construction, and 383 MW in advanced planning. Federal digitalization mandates, the presence of DE-CIX—the world’s busiest internet exchange handling peaks above 18 Tbps—and a steady flow of hyperscale capital underpin demand for new sites. Microsoft alone is investing EUR 3.2 billion (USD 3.4 billion) by 2025 to double regional AI infrastructure, while Amazon allocates EUR 8.8 billion (USD 9.44 billion) through 2026 for the AWS Frankfurt region. Operators continue to prefer Frankfurt over secondary German metros because of dense financial services workloads, unmatched interconnection options, and a mature talent pool, although the vacancy rate remains near 2.2% across legacy campuses. Grid-connection bottlenecks, rising construction costs, and stricter energy-efficiency rules represent the chief headwinds but have not deterred committed hyperscalers that can absorb higher development risk.
Key Report Takeaways
- By data center size, Mega facilities led with 54.72% revenue share of the Frankfurt data center market in 2024; Massive sites are forecast to post the fastest 7.90% CAGR through 2030.
- By tier type, Tier 3 sites captured 65.34% of the Frankfurt data center market share in 2024, whereas Tier 4 capacity is expanding at a 7.30% CAGR on the back of AI and fintech uptime demands.
- By colocation model, Hyperscale deployments accounted for 67.86% share of the Frankfurt data center market size in 2024 and are advancing at an 8.4% CAGR to 2030.
- By end user, Cloud and IT services held 28.2% revenue share in 2024 and are projected to grow at a 9.2% CAGR, the highest among all verticals.
Frankfurt Data Center Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Liquid-cooling adoption | +1.2% | Frankfurt metro, spillover to Rhine-Main region | Medium term (2-4 years) |
| Hyperscale cloud build-outs | +1.8% | Frankfurt core, expansion to Berlin and Munich | Long term (≥ 4 years) |
| Presence of DE-CIX internet hub | +0.9% | Frankfurt exclusive, EMEA network effects | Long term (≥ 4 years) |
| Federal digitalisation programmes | +1.1% | National, concentrated benefits in Frankfurt | Medium term (2-4 years) |
| Low-latency fintech and trading workloads | +0.7% | Frankfurt financial district | Short term (≤ 2 years) |
| District-heating incentives | +0.3% | Frankfurt municipal area | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Liquid-Cooling Adoption
Frankfurt operators are shifting from air to liquid cooling as AI racks exceed 40 kW densities and require sub-1.1 PUE performance. Equinix plans to roll out liquid systems across 100 global sites, while Digital Realty already supports 60 kW racks in its FRA portfolio.[1]JLL, “European Data Center Trends 2025,” jll.comEarly adopters gain a competitive edge because liquid loops can drive PUE toward 1.03 and fit more compute per square meter. Enterprise surveys show only 16% production adoption so far, largely due to retrofit costs. Microsoft’s pilot of zero-waste water loops signals how hyperscalers will scale the technology.
Hyperscale Cloud Build-outs
Amazon’s EUR 8.8 billion (USD 10.31 billion) Frankfurt commitment through 2026 illustrates the capital depth reshaping the Frankfurt data center market.[2]About Amazon, “AWS Frankfurt Region Expansion,” aboutamazon.com NTT’s 500 MW campus on a decommissioned US Army base highlights how developers secure land early to counter site scarcity. Hyperscale clustering attracts additional SaaS and PaaS ecosystems, creating stickiness that keeps workloads inside the region.
Presence of DE-CIX Internet Hub
DE-CIX Frankfurt moves over 40 exabytes per year and recently upgraded to 800 GbE ports, cementing the city’s low-latency advantage.[3]Lightwave, “DE-CIX Upgrades to 800 GbE,” lightwaveonline.comOperators connected to DE-CIX can reach 80% of peered networks via a single cross-connect, reducing transit expense and onboarding time for new tenants.
Federal Digitalization Programmes
Germany’s IPCEI Next Generation Cloud-Edge initiative injects EUR 3 billion (USD 3.52 billion) into sovereign cloud infrastructure and favors domestic hosting locations. Public-sector demand for GDPR-strict, in-country clouds drives sustained consumption of Frankfurt colocation because federal agencies are headquartered nearby.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High electricity prices | -1.4% | National, acute in Frankfurt metro | Short term (≤ 2 years) |
| Scarcity and cost of suitable land | -1.1% | Frankfurt core, surrounding areas | Medium term (2-4 years) |
| Grid congestion and sub-station delays | -0.9% | Frankfurt metro, emerging in secondary markets | Medium term (2-4 years) |
| Municipal noise and fluid-discharge rules | -0.6% | Frankfurt municipal boundaries | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
High Electricity Prices
German power tariffs remain among Europe’s highest. Data centers already consume more power than all Frankfurt households combined, and the Energy Efficiency Act obliges operators to reach 100% renewables by 2027. Operators lobby for utility-style subsidies to avoid passing costs to customers, while waste-heat agreements such as Cloud and Heat’s 600 MWh annual supply to Eurotheum mitigate OPEX.
Grid Congestion and Sub-station Upgrade Delays
The Federal Network Agency plans to allocate new megawatt slots based on project maturity, ending the “first-come, first-served” era. Microsoft and Amazon have already redirected part of their expansion toward regions like Brandenburg to sidestep Frankfurt’s power queue.
Segment Analysis
By Data Center Size: Mega Facilities Drive Hyperscale Consolidation
Mega sites controlled 54.72% of the Frankfurt data center market in 2024, equal to 713 MW of live IT load, while Massive campuses are set to add an extra 7.90% CAGR capacity by 2030. Such scaling supports cloud operators that now sign 30- to 80-MW pre-leases per tranche. The Frankfurt data center market size for Mega campuses is projected to hit roughly 990 MW by 2030, reflecting the model’s compelling economics. Operators able to aggregate 100 MW blocks secure lower GBP / kWh rates and can justify on-site 110 kV substations that shrink transmission losses.
Demand for smaller footprints persists for compliance-driven edge and latency-critical use cases. Nevertheless, scale advantages and AI rack densities favor consolidated mega designs. NTT’s 500 MW reuse of a former US Army base illustrates clever brownfield conversion strategies. NVIDIA and Deutsche Telekom’s 10,000-GPU industrial cloud, set to go live in 2026, embodies the new Massive paradigm.
Note: Segment shares of all individual segments available upon report purchase
By Tier Type: Tier 3 Dominance Faces Tier 4 Challenge
Tier 3 accounted for 65.34% of the Frankfurt data center market share in 2024 but now shows a maturity plateau as mission-critical AI inference tasks push enterprises into Tier 4 footprints. The Frankfurt data center market size assigned to Tier 4 is forecast to grow at 7.30% CAGR, supported by banking, aerospace, and high-frequency trading.
Equinix’s FR11x integrates N+1 power and cooling redundancy under ISO 27001 while retaining PUE targets below 1.3. The German Aerospace Center’s liquid-cooled HPC cluster operating at 40 °C ambient underscores how Tier 4 resilience now converges with sustainability objectives.
By Colocation Type: Hyperscale Segment Reshapes Market Dynamics
Hyperscale colocation secured 67.86% share of total square footage in 2024 and is expanding 8.4% CAGR through 2030. Retail colocation remains relevant for regulated workloads requiring customer-owned hardware, while wholesale cages cater to mid-sized SaaS firms needing contiguous multi-megawatt halls.
Vantage Data Centers’ EUR 750 million (USD 878.90 million) securitization covered four German properties, two of them in Frankfurt, both fully pre-leased to single hyperscale tenants. Digital Realty’s FRA2 provides direct access to over 400 carriers and to DE-CIX, multiplying the value of each leased rack where cross-connect density converts into higher monthly recurring revenue.
By End User: Cloud and IT Services Lead Digital Transformation
Cloud & IT controlled 28.2% of 2024 revenue and is accelerating at a 9.2% CAGR, powered by SaaS adoption, AI model training, and containerized workflows. Telecom operators lease high-density suites for 5G packet-core and emerging 6G testbeds. Manufacturing adoption of industrial AI clouds adds steady mid-single-digit megawatt demand, especially around autonomous production lines.
Deutsche Telekom and NVIDIA’s industrial cloud highlights how telcos turn from bandwidth providers into edge-cloud orchestrators. Thyssenkrupp Steel positions containerized micro-data centers adjacent to blast furnaces to run low-latency predictive analytics.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Frankfurt anchors Germany’s digital backbone thanks to a co-location of banking headquarters, legal certainty, and unparalleled network aggregation. More than 200 domestic and international banks operate within a 5 km radius of the main data-center corridor, generating a steady stream of low-latency financial trades that tolerate delays below 1 ms. The Frankfurt data center market size will grow as long as DE-CIX keeps adding new peering participants and 800 GbE ports. The surrounding Rhine-Main region offers a 47 million-strong consumer catchment within 200 km, attractive for e-commerce and streaming workloads.
Secondary metros such as Berlin, Munich, and Hamburg are emerging overflow destinations once Frankfurt’s grid queue closes. Berlin’s land-rich outskirts already lure developers like maincubes, which purchased 14 ha in Nauen for a renewable-powered campus that will recycle waste heat via local district pipes.
Competitive Landscape
Frankfurt anchors Germany’s digital backbone thanks to a co-location of banking headquarters, legal certainty, and unparalleled network aggregation. More than 200 domestic and international banks operate within a 5 km radius of the main data-center corridor, generating a steady stream of low-latency financial trades that tolerate delays below 1 ms. The Frankfurt data center market size will grow as long as DE-CIX keeps adding new peering participants and 800 GbE ports. The surrounding Rhine-Main region offers a 47 million-strong consumer catchment within 200 km, attractive for e-commerce and streaming workloads.
Secondary metros such as Berlin, Munich, and Hamburg are emerging overflow destinations once Frankfurt’s grid queue closes. Berlin’s land-rich outskirts already lure developers like maincubes, which purchased 14 ha in Nauen for a renewable-powered campus that will recycle waste heat via local district pipes.
Frankfurt Data Center Industry Leaders
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Digital Realty
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Equinix
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NTT (GDC / e-shelter)
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CyrusOne
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Vantage Data Centers
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- June 2025: NVIDIA and Deutsche Telekom unveiled an industrial AI cloud featuring 10,000 GPUs, slated to go live in 2026.
- June 2025: Vantage Data Centers secured EUR 720 million (USD 843.74 million) via Europe’s first data-center asset-backed securitization covering four German sites.
- March 2025: Digital Realty confirmed an AI-optimized expansion in Frankfurt that meets upcoming PUE 1.3 and 100% renewables targets.
- February 2025: Green Mountain and KMW completed a new data center outside Frankfurt, adding renewable-ready capacity.
Frankfurt Data Center Market Report Scope
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
The Frankfurt Data Center Market is segmented by DC Size (Small, Medium, Large, Massive, Mega), by Tier Type (Tier 1&2, Tier 3, Tier 4), by Absorption (Utilized (Colocation Type (Retail, Wholescale, Hyperscale), End User ( Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce)) , Non-Utilized).
The market sizes and forecasts are provided in terms of volume (MW) for all the above segments.
| Small |
| Medium |
| Large |
| Massive |
| Mega |
| Tier 1 and 2 |
| Tier 3 |
| Tier 4 |
| Cloud Service Providers (CSPs) | |||
| Enterprise, Modular and Edge | |||
| Colocation | Utilized | Colocation Type | Retail |
| Wholesale | |||
| Hyperscale | |||
| End User | Cloud and IT | ||
| Telecom | |||
| Media and Entertainment | |||
| Government | |||
| BFSI | |||
| Manufacturing | |||
| E-Commerce | |||
| Other End User | |||
| Non-Utilized | |||
| By Data Center Size | Small | |||
| Medium | ||||
| Large | ||||
| Massive | ||||
| Mega | ||||
| By Tier Type | Tier 1 and 2 | |||
| Tier 3 | ||||
| Tier 4 | ||||
| By Data Center Type | Cloud Service Providers (CSPs) | |||
| Enterprise, Modular and Edge | ||||
| Colocation | Utilized | Colocation Type | Retail | |
| Wholesale | ||||
| Hyperscale | ||||
| End User | Cloud and IT | |||
| Telecom | ||||
| Media and Entertainment | ||||
| Government | ||||
| BFSI | ||||
| Manufacturing | ||||
| E-Commerce | ||||
| Other End User | ||||
| Non-Utilized | ||||
Key Questions Answered in the Report
What is the current size of the Frankfurt data center market?
The market hosts 1.30 thousand MW of live IT power in 2025 and is projected to reach 1.80 thousand MW by 2030, reflecting a 6.78% CAGR.
Why do hyperscale providers favor Frankfurt over other German cities?
Frankfurt offers the world’s busiest internet exchange (DE-CIX), proximity to more than 200 financial institutions, and well-established dark-fiber routes, all of which reduce latency and improve network economics.
How will Germany’s Energy Efficiency Act affect data center operators?
Operators must source 100% renewable power by 2027 and achieve a PUE of 1.3 by 2030, driving investments in liquid cooling, heat-re-use systems, and green PPAs.
Which data center size segment is growing fastest in Frankfurt?
Massive facilities are forecast to grow at 7.90% CAGR as hyperscalers require larger contiguous blocks of power and space.
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