Berlin is changing Germany's data centre market
Berlin has moved rapidly from being a modest regional data centre location to Germany’s fastest-growing secondary market. As of late 2024 and early 2025, the Berlin region hosts approximately 150MW of operational IT capacity, supported by a development pipeline of around 200MW.
The growth is not isolated. It reflects the increasing demand within the capital region brought about by increasing constraints in Frankfurt – Germany’s primary data centre hub. With roughly 750MW of installed IT load, 500MW under construction, and close to 400MW in planning, Frankfurt dominates the national market. However, the city is now facing limitations in land availability and grid capacity.
Berlin is not taking Frankfurt’s place, but it is becoming a strong secondary location that can handle extra demand and help diversify Germany’s digital infrastructure.
A shift to regional capacity
Like many countries investing in cloud computing, artificial intelligence, and high-performance computing, Germany’s data centre market is expanding. Analysis shows that Germany already hosts more than 500 data centres with an installed IT power demand of over 1.3GW. This figure is projected to reach 3.3GW by 2030.
To address this, Germany’s national strategy is about regional balance. The objective is resilience. By distributing data centres across multiple locations, Germany can achieve the IT capacity growth that it needs to serve European demand. Berlin and the surrounding Brandenburg region have become the most viable alternatives to Frankfurt.
As the political capital and a growing technological centre, Berlin benefits from proximity to government bodies, research organisations, and enterprise demand. Additionally, the surrounding region offers the space and grid infrastructure that Frankfurt is beginning to struggle to support.
Power availability and grid reality
Across Germany, and arguably across Europe, power availability has become the single biggest determining factor for data centre development. Power and land availability can unlock data centre development, and Berlin is no exception. Within the city, about 2.8 GW of grid connection requests are currently pending for data centre projects. This demand exceeds existing capacity, calling for the introduction of a new connection allocation procedure.
However, Berlin, together with the broader Brandenburg region, does have potential that is less constrained than Frankfurt. Brandenburg has large areas of developable land and is located close to renewable energy generation hotspots, most notably the wind turbines found in Northern Germany. It is also in an area planned for future expansion of high-voltage transmission infrastructure.
This has resulted in several large-scale projects entering the market and showcasing this shift. VIRTUS has declared a 300MW campus in Wustermark. Multi-building campuses are planned in Nauen, and operators including Colt are advancing hyperscale developments east of Berlin. These projects are built around long-term grid planning and have been decided by liaising with regional utilities. This progressive approach assures capacity can be secured at scale when needed.
Land, planning, and heat infrastructure
As stated above, land availability has been a determining factor in Berlin’s growth as a market. Frankfurt rapidly grew as a hub, but in doing so, it exhausted much of its land suitable for data centres. Planning regulations in Frankfurt increasingly restrict data centre construction to designated zones, and standards like the EnEfG (Energy Efficiency Act) have imposed strict PUE targets and waste heat recovery requirements. This, combined with the high demand for data centres in the region, given its ability to supply Europe, has driven land prices upward and made large campuses much less feasible.
Berlin and Brandenburg offer a different story. Land remains available at scale, often located only 20-40km from central Berlin. Prices are rising; however, they remain lower than Frankfurt’s primary zones. This allows hyperscale and colocation developers to design campuses to be delivered in phases, with room for expansion and integration with future infrastructure built into the design.
As discussed in our previous blogs about Germany (linked below) waste heat recovery and district heating are of huge importance to the German government and those looking to enter the market. Berlin operates one of Germany’s most extensive district heating networks and is undergoing a progressive decarbonisation. With national rules from the EnEfG requiring data centres to reuse between 10% to 20% of residual heat, proximity to established heat networks provides operators with a clearer pathway to compliance.
Long-lasting viability
Frankfurt’s high land prices and constrained grid mean that operators entering the market will require more capital expenditure for longer delivery times. Securing a plot of land frequently involves lengthy negotiations with multiple stakeholders, supported by extensive site due diligence. Planning toward future expansion and grid connection, too, can add cost and come with the risk of uncertainty, specifically in predicting timelines.
As a 1:1 comparison, Berlin is more favourable in terms of cost. It is true that land prices are increasing but still remain below Frankfurt’s levels and rate of inflation. There is also the benefit that a phased delivery model can have, particularly for larger campuses, such as those in Brandenburg. By delivering in phases, data centres can reduce their cost per megawatt and become partly operational earlier, making the investment more efficient. The sites located near renewable energy generation and within planned grid expansion areas will also give savings in the future and support stability in planning.
The complementary national hub
Looking more broadly at the market, Germany is a key country for data centres delivering to Europe. Across the country, there is growth, and even saturated areas like Frankfurt are still incredibly valuable to those entering the market. However, as we have seen in other countries like the UK, France, and Spain, diversification is key to enabling data centres to be built at a pace and scale that meet demand.
For developers evaluating Germany, the decision is not just to pick Frankfurt. Berlin has showcased that the prospects of data centres in Germany will be diversified, not just limited to one hub. For now, and the near future, Berlin is Germany’s most important secondary market although the expectation is that others will also emerge.
