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Germany's Data Centers Face Electricity Crisis as Demand Soars

Soaring demand for AI and digital services is pushing Germany's data centers to the brink. Without affordable, base-load electricity, this growth could be at risk, impacting the country's digital future.

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1 min read
This picture is clicked inside the room. In this picture, we see a table on which laptop, speaker,...
This picture is clicked inside the room. In this picture, we see a table on which laptop, speaker, monitor, keyboard, ball, mouse, scanner and papers are placed. In the left bottom of the picture, we see a table on which electronic goods are placed. Behind that, we see a wall on which charts and posters are pasted.

Germany's Data Centers Face Electricity Crisis as Demand Soars

Germany's data centers face a significant challenge. While their IT connection capacity is set to increase by 50 percent by 2030, demand for computing power, driven by digitization and AI, will outstrip this growth by a factor of three to five. Industry leaders warn that without affordable, base-load electricity, this growth could be threatened, impacting Germany's digital sovereignty and international competitiveness.

Currently, no official guarantee for accessible, base-load-capable electricity exists, despite the industry's urgent demands. High electricity prices in Germany, at around 23 cents per kilowatt hour, are 25 percent above the EU average, further exacerbating the issue. The eco association, representing the digital industry, warns that without decisive political action, the growth boom could be lost.

The digitization of all areas of life and work, along with the increasing use of AI technologies, is driving this growth. The industry's revenue is projected to increase from 245 billion euros in 2025 to 389 billion euros in 2030. However, a massive shortage of digital infrastructure, particularly data centers, is hindering progress. Slow fiber optic expansion, hesitant digitization in the SME sector, and a lack of platform competence are blamed for these infrastructure gaps. Despite these challenges, the German internet economy is expected to grow by an average of 9.7 percent annually over the next five years.

The eco association demands that the German government ensure access to affordable, base-load electricity to secure digital sovereignty and maintain international competitiveness. Without additional capacity and affordable electricity, computing loads may shift abroad, threatening Germany's digital future. The industry's growth, and the country's economic prospects, hang in the balance.

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