Germany Data Center Power - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2023 - 2029)

The Germany Data Center Power Market size is estimated at USD 1.12 billion in 2024, and is expected to reach USD 1.47 billion by 2029, growing at a CAGR of 5.30% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

Under Construction IT Load Capacity: The upcoming IT load capacity of the German data center market is expected to reach 2356 MW by 2029.

Under Construction Raised Floor Space: The country's construction of raised floor areas is expected to increase to more than 11.6 million sq. ft by 2029.

Planned Racks: The country's total number of racks to be installed is expected to reach 356,000 units by 2029. Frankfurt will likely house the maximum number of racks by 2029.

An increasing need for data storage has resulted in an upsurge in the number of data centers, and the rising usage of data centers has increased electricity consumption in the country. Germany has made clear progress in increasing competition in electricity and natural gas markets. It has reduced the use of fossil fuels and increased the share of renewable energy. The country’s economy is also becoming less energy intensive. Moreover, to further reduce energy consumption, key market players are focusing on introducing efficient power management systems such as PDUs, busways, and UPS for the purpose of controlling unnecessary expenditures in data centers, which is expected to increase market growth.

Planned Submarine Cables: Nearly seven submarine cable systems connect Germany, and many are under construction.

Germany Data Center Power Market Trends

IT & Telecommunication Segment to Hold a Major Share in the Market

• The increased adoption of cloud computing services in the country has increased IT infrastructure components. Many technology companies have launched cloud services to support the digital transformation efforts of many enterprises. Moreover, the increased adoption of e-commerce services has facilitated digitization. These instances are increasing the demand for the data center power market during the forecast period.
• Moreover, the data center market is achieving new records due to the increasing penetration of connected devices, including consolidation and the emergence of new players. Such cases will have a positive impact on market growth.
• Mobile broadband communication in Germany has evolved drastically. The 4G internet services were launched around 2011 in Germany, with major operators rolling out their services, with maximum download speeds recorded at around 45 Mbps. Despite the introduction of 5G around 2019, the average download speed of mobile internet in Germany accounted for about 24 Mbps, down to the increasing demand for faster internet speeds, outpacing the capacity to handle the increasing demand. To support the demand, more data centers are formed, which corresponds to positively influencing the data center power market.
• The number of servers in data centers is likely to increase as the growing demand for these digital services and changing adoption of end users, primarily focused on digital connectivity, requires more data storage. Typically, this situation corresponds to increased demand for data centers. Increasing data centers necessitates increasing the use of systems for power facilitation.
• With the constant evolution of network consumption and the need for faster data transmission rates in Germany, the laying down of fiber networks has increased in the country. Significant network service providers are coming forward to take strategic steps through investments and partnerships to contribute to the expansion plans in the country, with the government also contributing to the same. With increasing connectivity, the number of data centers will increase. Increasing data centers necessitates increasing the use of systems for power facilitation.

PDUs are Expected to Hold a Significant Share in the Market

• The growing focus on digitization, internet penetration, and e-commerce across the country has created a need for storage capacity, resulting in huge demand for data centers and increased power consumption. The growing need for data storage is leading to the adoption of intelligent power distribution units (PDUs) to optimize power consumption in data centers rather than simple multi-socket rack installations, servers, and networking devices.
• PDUs are essential components of data center and server room infrastructure, allowing real-time monitoring of power consumption, voltage, current, and other electrical parameters. This data allows administrators to make informed decisions about power allocation and capacity planning.
• By tracking power consumption trends, managers can plan for future growth and avoid exceeding power capacity, preventing overloads that can lead to equipment failure. It also helps identify inefficiencies and optimize energy consumption. This eliminates unnecessary power consumption, lowers costs, and reduces your environmental footprint. Additionally, administrators can access and control it remotely, reducing the need for physical presence and minimizing disruption to operations.
• Industrial end users are gravitating toward cloud platforms such as Microsoft Azure, Google Cloud, and AWS. Growth trends indicate rapid adoption of cloud-based applications by end users. This opens the opportunity for intelligent and compact PDUs that can meet the increasing power requirements to operate such platforms.
• With the growth of massive data centers in the country, the need for PDUs is also increasing. Faster internet speeds and the associated proliferation of accessible devices play an important role in determining and estimating national data consumption. The number of 5G mobile connections has increased significantly, which means that the penetration rate of 5G mobile in the country is high. Increased data traffic will further increase the demand for DC facilities with intelligent PDU systems.

Germany Data Center Power Industry Overview

The German data center power market is moderately concentrated due to higher initial investments and low availability of resources. It is dominated by a few major players like Schneider Electric SE, Fujitsu Ltd, Cisco Technology Inc., Eaton Corporation, and ABB Ltd. These major players, with a prominent share of the market, focus on expanding their customer base across foreign countries. These companies leverage strategic collaborative initiatives to increase their market share and increase their profitability. However, with technological advancements and product innovations, mid-size to smaller companies have increased their market presence by securing new contracts and tapping new markets.

January 2024: Vertiv announced the plans to double its manufacturing capacity for busways, switchgear, and integrated modular solutions (IMS) by 2025. The expansion plans include increasing utilization and footprint in the United Arab Emirates, Ireland, South Carolina (United States), Mexico, Slovakia, and Northern Ireland.

December 2023: Eaton, an intelligent power management company, announced the launch of its new Rack PDU G4 (4th generation), which provides high security and a business continuity data center. It also combines with C39 outlets that securely connect both C14 and C20 power cords, backed by a locking mechanism and a built-in high retention system that secures the power cord.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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