Download Datacenter Outlook Germany 2024/25
Preview of Datacenter Outlook Germany 2024/25 [EN]Datacenter Outlook Germany 2024/25
As we launch this year’s Datacenter Outlook Germany alongside the German Datacenter Conference, we reflect on the impressive growth and resilience of our industry, which is being shaped by rapid technological advancements and a growing demand for sustainable solutions.
This year’s conference focuses on key themes like Artificial Intelligence (AI), sustainability, and evolving regulatory frameworks, topics that will define the future of data centers in Germany and beyond. AI, in particular, is no longer just a buzzword; it is a driving force pushing us towards unparalleled efficiency. However, it also requires us to rethink how we handle energy consumption, infrastructure, and long-term planning.
Sustainability remains at the heart of our discussions. As datacenters grow to meet increasing demand, we must align growth with environmental stewardship. This means adopting greener practices, energy-efficient technologies, and collaborating with policymakers to foster an environment that prioritizes long-term ecological health.
Enjoy reading Datacenter Outlook Germany 2024/25 [EN]!
The publication was created with specialist input from GDACon24 partners NDC-GARBE, Stulz, JLL, TTSP HWP, RITTAL, NTT DATA, NTC Notstromtechnik-Clasen, and CyrusOne. Also, the Outlook also features the numerous experts who contributed to the success of the GDC with their expertise in presentations and discussions.
Collaboration Will Be Key to Overcoming Challenges
From urban planners to policymakers, industry leaders to innovators, the success of our sector depends on a shared vision that includes a variety of perspectives. As the German Datacenter Association, our responsibility is to foster this dialogue, bringing together all stakeholders to ensure that data centers can flourish while making a positive impact on society and the environment.
The coming years are crucial for the European data center industry. With the convergence of AI, growing data needs, and sustainability concerns, the challenges are significant, but so are the opportunities. It’s our duty to lead with innovative solutions and promote sustainable growth. As we gather for this conference, let's seize the opportunity to exchange knowledge, inspire progress, and form partnerships that will define the future of our industry. We urge you to participate, collaborate, and help shape the next phase of data center development.
The German Datacenter Association sees its mission in fostering dialogue and ensuring that data centers operate both economically successfully and environmentally responsibly. Our dynamically growing sector requires close collaboration among all stakeholders to successfully address the challenges of the future.
Anna Klaft |Chairwoman of the German Datacenter Association
Data Centers Shape the Future: Investments in Reliable and Secure Infrastructures
Data Center Industry Booms: AI Drives Growth but Presents Challenges on the Path Forward
The key to success: Political foresight and fostering young talent for sustainable development.
German Data Center Market
Addressing Rising Demand While Navigating Regulation, Location and Energy Challenges
The growing importance and widespread use of technologies like AI, Machine Learning, 5G, and Cloud services is driving a rising demand for data centers. These centers will be essential in the near future as the volume of data being transmitted continues to increase significantly. According to the International Data Corporation (IDC), the annual data traffic could reach as much as 284 zettabytes (ZB) by 2027. To put this into context, one zettabyte is roughly equivalent to 500 billion hours of high-definition video.
As data volumes keep rising, there is a need for new, larger, and more powerful data centers. Currently, Germany plays a key role in the European market, with Frankfurt being the second most important data center hub on the continent, and Berlin experiencing rapid growth. While emerging markets like Munich and Hamburg are not yet major players, they contribute to Germany's status as a significant location for data centers, which will soon be further enhanced by the development of the Rhineland Region.
AI Brings Water into the Data Center
How Direct Single-Phase Liquid Cooling Can Become a Practical Reality for AI
Artificial intelligence (AI) holds the promise of transformative benefits, but the question remains: is our IT infrastructure prepared to handle it? Data center operators, in collaboration with their technology partners, are venturing into new technological territories. The power demands of AI applications, such as training and running large language models (LLMs) or engaging in high-performance computing, are quickly surpassing the capabilities of traditional air cooling systems. Once power consumption exceeds 30 kW per rack, only liquid cooling, ideally applied directly to the processor, becomes a viable solution.
We are already seeing the emergence of racks with capacities exceeding 150 kW. The latest, extremely fast graphics processing units (GPUs) generate so much heat that original equipment manufacturers (OEMs) are now designing them with direct liquid cooling as the standard. For instance, while 80 percent of Nvidia chips sold in the first quarter of 2024 were designed for air cooling, it is projected that by the first quarter of 2025, 85 percent of them will be equipped for liquid cooling.
Illustrationen gestaltet von Freepik.
How will Data Centers
Continuing to Respond to the Acceleration of AI
Since ChatGPT's launch in early 2023, followed by various other private and open-source AI models, businesses, governments, and regulators have been struggling to keep up with the rapid developments. This challenge also extends to the data center industry. AI presents both opportunities and difficulties for the sector. While the increased workload from AI will drive the industry's growth and highlight its importance, it will also put additional pressure on an industry already struggling to meet the soaring demand, especially as the availability of power and land becomes more constrained. As AI demand grows, data centers must adapt to the challenges of this technological revolution.
The expansion of AI workloads, which are significantly more demanding than traditional ones, will exponentially increase the need for data storage. For instance, AI-powered searches require four to five times more computing power than traditional searches, leading to new and different demands on data centers. Earlier this year, at Nvidia's GTC conference, Jensen Huang introduced the Blackwell platform, which offers at least 2.5 times the performance of its predecessor, the Hopper platform, released just two years earlier. This marked a clear shift in the performance requirements that data centers will need to meet in this new era.
The industry is only beginning to understand the full impact of these changes on data centers. The continued growth of AI depends heavily on the ability of data centers and power infrastructures to meet these demands. This requires finding new sustainable solutions to support innovation while minimizing additional emissions and energy consumption.
How Can We Meet the Growing Demand for Highly Qualified Talent in the Data Center Industry?
Focus on Onboarding and Development Programs
The Data Center Impact Report 2024 estimates that there are approximately 65,000 jobs in Germany's data center sector, encompassing direct, indirect, and induced employment. Due to the increasing demand for skilled workers, there is a shift in focus regarding the qualifications required. As employers in this sector, it's essential to carefully determine the skill sets we need. Given that we often recruit from other industries or directly from educational institutions, we can't always expect candidates to have specific experience in the data center industry.
Investing in both technical skills and personal development is crucial. According to the Gallup State of the Art Global Workplace 2024 Report, employees in Europe exhibit the lowest emotional connection to their workplace compared to all other global regions analyzed. Since the data center industry is a critical infrastructure sector, it can be seen as a meaningful field to work in. Developing leadership programs and creating personalized career paths within the company can help reduce employee turnover.
In addition to promoting our industry, it's also vital to make it appealing to new target groups. Internships, working student positions, and close partnerships with universities and schools are excellent ways to provide insights into the industry and generate interest among potential future employees.