Germany plans to double data centres by 2030 to compete with US and China in AI race

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Germany unveiled plans to at least double its data centre capacity and boost artificial intelligence processing fourfold by 2030. Digital Minister Karsten Wildberger proposed measures including land allocation and faster approvals to help Europe's largest economy catch up with dominant players. The strategy aims to strengthen digital sovereignty and reduce reliance on American tech giants.

Germany Targets Massive Expansion in Data Centre Capacity

Germany has announced ambitious plans to at least double data centre capacity and quadruple artificial intelligence data processing by 2030, marking a significant push to compete with the United States and China in the global AI race

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. Digital Minister Karsten Wildberger unveiled the strategy, warning that "without a massive increase in capacity, we will not be able to keep pace in the global race for AI"

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. The German government plans received ministerial approval, signaling strong political commitment to building digital infrastructure that can support the nation's technological ambitions.

Source: Reuters

Source: Reuters

Currently, AI data centres in Germany had total capacity of 530 MW at the end of last year, with much of that operated by non-German providers, according to figures from German lobby group Bitkom

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. This reliance on foreign operators has heightened concerns about digital sovereignty, particularly as Europe's top economy watches nervously at the power of American tech giants like Amazon, Microsoft, and Google, who remain among the biggest spenders on German data infrastructure.

Source: ET

Source: ET

Strategic Measures to Accelerate Development

The strategy includes allocating land for new developments and streamlining approval procedures to attract investment more rapidly

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. Under the new scheme, municipal business taxes will go to the town or city that attracts a new data centre, rather than to where the company is headquartered, creating direct incentives for local governments to facilitate projects. Economy and Energy Minister Katherina Reiche emphasized that "this strategy is based on the belief that data centres are about more than just digital policy. It is industrial policy. It is energy policy. It is infrastructure policy"

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The government also plans to provide cheap energy and encourage collaboration between different companies in the AI supply chain

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. While officials stated they "welcome investment from third countries," the government is primarily targeting European and German companies for investment, reflecting the broader push to reduce reliance on American tech giants.

Digital Sovereignty Concerns Drive Policy Shift

Wildberger emphasized that "every new data centre in Germany strengthens our digital sovereignty"

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. This focus on sovereign control over AI infrastructure has intensified as European countries confront rising tariffs, armed conflicts, and sharply diverging online-content regulation

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. The worries have grown particularly acute as US President Donald Trump's administration has taken a more confrontational tone with EU leaders on issues from trade to defense.

However, experts caution that building capacity alone won't guarantee true independence. Harald Wehnes, professor of computer science at the University of Wuerzburg, praised the strategy but noted that "computing power is the raw material of the digital age. Those who lack their own will inevitably outsource innovation and control over their data abroad, running the risk of becoming a digital colony"

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. He added that "a Google or Amazon Web Services data centre in Frankfurt is still subject to US law," emphasizing that "real sovereignty only comes once operators are fully subject to European law."

The initiative reflects broader European anxieties about the lack of big European tech champions and represents a concrete attempt to build the high-performance computing infrastructure necessary for AI development. As Germany pursues this expansion, observers will watch whether the nation can attract sufficient domestic and European investment to achieve genuine technological independence, or whether American companies will continue to dominate the landscape despite the policy push.

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