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Home > Article > GDPR pushes cloud data center investment in Germany

GDPR pushes cloud data center investment in Germany

Germany, one of the most regulated countries for cloud computing in Europe, effected by GDPR. The spending on IaaS and SaaS is to increase by over 20% in 2020 compared to 2019.

Seda Nur Cinar by Seda Nur Cinar
September 23, 2020
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Paul Budde Communication published a focus report on Germany that outlines the major developments and key aspects in the telecom’s markets. Germany is one of the most regulated countries for cloud computing in Europe. It is expected that the cloud data center spending in Germany reached over $8 billion in 2020.

25 new facility projects despite COVID-19 outbreak

The spending on IaaS and SaaS is to increase by over 20% in 2020 compared to 2019. The GDPR is driving investments and the regional cloud network development in Germany. In terms of new technology investments, the German government is likely to spend around $4 billion on artificial intelligence products and services by 2025. According to the report, Equinix, Interxion, Digital Realty, and NTT Global Data Center are among the major revenue contributors in the market.

However, the pandemic has already postponed the construction of new facilities across Germany. Many vendors are dependent on China and Taiwan for the manufacturing of IT and power and cooling infrastructure solutions. Therefore, it is estimated that the data center market in Germany is likely to face supply chain issues.

Industry 4.0 and the Industrial Internet of Things (IIoT) are the key factors that attract the data center market growth in Germany for the next 5 years. Enterprises in the country are observing high data generation across industries. This will affect positively the big data and IoT technology investments in the data center market in Germany.

Key findings

  • Germany witnessed investment in around 25 new facility projects last year.
  • CloudHQ NDC Data Center and Vantage Data Center are the new entrants planning to build multiple hyperscale facilities.
  • The presence of facilities in populated areas is likely to increase concerns over carbon emission, which is likely to boost the adoption of efficient generator systems.
  • The adoption of redundant rack PDUs of over 10 kW power capacity in the high-density environment will give a significant boost to the region.
  • The data center market in Germany has a strong potential for modular/prefabricated facilities among edge facility deployment.

 

Tags: Digital Realty TrustEquinixGDPRInterxionNTT
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Seda Nur Cinar

Seda Nur Cinar

Seda Nur Cinar is the news editor of the Cloud7 News. With more than 8 years of Linux and cloud experience, Seda is a Linux and opensource enthusiast, security researcher and a web application developer.

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