Amazon is investing a further ten billion euros in Germany. News of the planned major investment hit the media at the end of last week. The interesting thing is that the majority of the money will not be used for logistics, but for the construction of data centres. We are seeing this development more and more frequently. Digitalisation is also increasing the demand for IT infrastructure. Requests for suitable property solutions are increasing.
In 2023, Germany was the European leader in terms of the number of data centres. One of the world's most important internet hubs is located in Frankfurt am Main. But is this enough?
Similar to a logistics property, choosing the right location is fundamental. In addition to the limiting factor of space, the infrastructure plays an absolutely key role here. Data centres must provide connectivity - and with minimal latency. This is no easy task in a country where network expansion is progressing slowly. And things are no better when it comes to renewable energies, which would be hugely important for the sustainable operation of a data centre. In addition, there are bureaucratic hurdles, such as the BImSchG authorisation that is often required for construction, the approval according to the Federal Immission Control Act, which can take a year and a half in Germany.
Only a few locations in Germany meet the complex requirements and are developing into digitalisation centres. This is nowhere near enough for the level of digitalisation that Germany wants to achieve - and must achieve in order to remain competitive as a business location! We therefore urgently need to do our homework and reconcile the issues of digitalisation and bureaucracy.
