Germany Colocation Market - Forecasts from 2024 to 2029

The Germany colocation market is expected to grow at a CAGR of 7.04%, reaching a market size of US$3.832 billion in 2029 from US$2.38 billion in 2022.

The colocation data center provides renting space to business companies for servers as well as other computing hardware, thereby enabling them to remove in-house servers or data centers. It provides them access to advanced data center technology which offers security, continuity, and scalability for various applications and data systems.

Market drivers

• High internet penetration has positively impacted the market growth

Germany is witnessing a significant increase in its internet users as well also it is actively involved in the establishment of data protection laws. For instance, according to World Bank data, in 2022, 92% of Germany's overall population was active internet user which showed an increase of 8% from 2017. Colocation data centers provide reliable connectivity networks and high-security advantages and with such law establishment and an increase in internet users, the demand for colocation data centers will also increase in Germany, thereby stimulating market growth.

• Investments in 5G technology has caused an upward market trajectory.

Favorable government schemes toward 5G technology establishment are positively impacting the colocation market growth in Germany. The introduction of 5G has created a boom in the volume of data transmission over the years which has made companies shift from traditional on-premises data center to flexible and efficient colocation data center which provides a high level of security and operability to companies during data processing. The German government realizing the growing trend of 5G adoption is actively investing in the establishment of such technology in the country. For instance, in July 2022, the German Federal cabinet approved the "Gigabit Strategy 2030" of the Federal Ministry for Digital Affairs and Transport which aims to achieve full 5G population coverage by 2030. Such a favorable scheme will boost colocation service demand in Germany for effective data handling and storage during the forecast period thereby augmenting the market growth.

• Large enterprise will show considerable growth

Based on enterprise size, the Germany colocation market is segmented as a small, medium, and large. The large enterprise is expected to grow at a significant rate during the forecast period of the Germany colocation market, owing to the strategic collaboration for digitizing the infrastructure in major sectors of Germany which will boost the demand for major colocation services and infrastructures for efficient data processing, thereby propelling the overall market growth during the forecast period.

Key Development

• In December 2023: Arcus Infrastructure Partners announced the launch of "Portus Data Centers" which consist of four data center facilities located in Munich, Hamburg, and Luxemburg. The facilities will provide low latency colocation services to business and enterprises.
• In October 2022: Cube Infrastructure Manager agreed to acquire the Frankfurt-based colocation, private cloud, and dedicated servers solution provider firstcolo datacenters GmbH from EMRAM Capital and diva-e

Segmentation:

By Type

• Retail
• Wholesale
• Hybrid

By Enterprise Size

• Small
• Medium
• Large

By Industry Vertical

• BFSI
• Communication Technology
• Education
• Healthcare
• Media and Entertainment
• Retail & E-Commerce
• Others