The recently announced US Stargate initiative is undoubtedly impressive. With an investment volume of 500 billion US dollars, it is sending a clear signal: digital infrastructure, especially data centers, are essential for modern technologies such as artificial intelligence (AI). But while Stargate serves as an ambitious roadmap, a closer look shows that the expansion will not happen overnight – it is an investment in the future .
Europe in the global AI competition
It is not only the USA that is relying on massive investments in AI infrastructure. The European Commission seems to have recognized this gap in the EU and has announced in a first step that it will provide an additional 20 billion euros from the EU budget for the development of AI in Europe. The money is to flow into four so-called gigafactories where developers can train AI models with large amounts of data. France also responded to Stargate at the AI Summit in Paris: President Emmanuel Macron presented a €109 billion programme to expand France’s AI infrastructure. Particularly noteworthy: 50 billion euros of this sum come from the sovereign wealth fund of the United Arab Emirates and Brookfield plans to invest 15 billion euros in French data centers. Other European countries, on the other hand, are still hesitating.
China is pursuing a different strategy. There, AI is not only seen as an economic factor, but also as a geopolitical factor. The government provides data as a factor of production and actively promotes companies. This can be seen in developments such as the AI app Deep Seek, which competes with Western models and scores points with an optimized use of existing computing power. Beijing has understood that those who invest in digital infrastructure secure technological sovereignty.
Germany: Strong foundation for data centers
What is the situation in this country? Germany has very good prerequisites for the expansion of data centers. One of the highest data protection standards in the world motivates companies to host their data domestically. A polycentric structure with several economic hubs, spread over the entire country, as well as a comparatively stable power grid with low downtimes create a very good basis. Germany is also a transit country – not only for motor vehicle traffic, but also for data traffic. In addition, there are highly qualified specialists with experience and expertise in the field of digital infrastructure as well as regulatory requirements such as the Energy Efficiency Act, which promote sustainable operation.
But despite these strengths, Germany faces a crucial challenge: electricity availability. As the current JLL Global Data Center Outlook 2025 shows, the global market for data centers is growing rapidly. Hyperscaler and colocation centers combined around 50 gigawatts (GW) of computing power in 2024. Seven GW are to be added as early as 2025, and by 2027 it could be up to 89 GW – depending on the scenario. In the EMEA region (Europe, Middle East, Africa), growth is expected to increase to up to 19 GW. However, a central bottleneck is the energy supply. According to JLL, global data center power demand is expected to account for two to four percent of global energy consumption by 2030. In Germany, the high energy demand is already an obstacle to permits and new buildings in some markets.
Growth potential, but still low willingness to invest
Germany has the potential to become Europe’s leading location for data centers. Studies show that the IT connected load of German data centers will increase from the current 2.7 GW to 4.8 GW by 2030 – a growth of 75%. But while foreign investors are increasingly discovering this market for themselves, German investors have so far been holding back. Data centers offer stable cash flows and long-term leases that enable attractive returns.
Recommendations for action in Germany
The challenge is clear: without a reliable and sustainable energy infrastructure, it will not be possible to fully exploit the potential of digitalization. Germany must act now. Bureaucratic hurdles must be removed and approval procedures simplified. The expansion of renewable energies and storage solutions is essential, as data centers require stable and sustainable power sources. Investments in transmission grids and substations are just as crucial, as growth cannot keep pace without an efficient grid structure. The promotion of energy-efficient technologies such as liquid cooling, which are more efficient than conventional air cooling, offers further potential.
Stargate shows us what a coordinated strategy to promote digital infrastructure can look like. In Germany, we are also faced with the task of adapting the regulatory framework, accelerating grid expansion and directing investments in a targeted manner. The glass is half full – but only if we set the right course. Now is the time to actively shape Germany’s digital future!
