USD 10.41bn: market size, not automatically “deal volume”
Many publications cite USD 10.41bn as Germany’s data center market size for 2026 (forecast), which is different from annual real estate transaction volume.
Still, a rising market size typically correlates with stronger demand, more pipeline, and increasing capital allocationsinto the asset class.
Transaction volumes: growing share, development-heavy structure
Germany’s data center investment activity is often driven by:
- land / powered land acquisitions,
- forward funding / forward purchase,
- operator/platform M&A.
Market summaries indicate that data centers accounted for ~€1.2bn in Germany in 2025, roughly ~5% of the commercial investment market, with the majority tied to development land rather than standing assets.
Other coverage points to ~€1.05bn of land sales for large DC developments in 2025.
Yields: why power constraints keep pricing supported
Across EMEA, the recurring theme is clear: power availability is the bottleneck, and demand remains robust driven by AI and cloud.
Implications:
- “stabilized core” assets remain scarce (often supporting low yields),
- powered sites and near-term delivery timelines command a premium,
- development underwriting hinges on grid access and realistic milestones.
Cost inflation also matters: JLL highlights rising construction costs per MW, impacting feasibility and required returns.
Where deals happen: Frankfurt first, then “power-led” secondaries
Frankfurt continues to lead as a core hub with tight availability and strong take-up dynamics.
Beyond Frankfurt, investors increasingly look for:
- brownfields with credible grid pathways,
- forward structures with bankable offtake,
- platform plays as capital allocations to data centres accelerate.
Practical underwriting checklist (investors + brokers)
- Power: connection status, timelines, conditions, grid risk.
- Permitting: realistic pathway, proof of progress, schedule discipline.
- Commercials: lease length, indexation, breaks, credit, SLA.
- CAPEX per MW: validated assumptions, lead times, contractor capacity.
If you have a German DC opportunity
Prime East is happy to connect with investors and brokers!
Sources:
- Mordor Intelligence – Germany Data Center Market
https://www.mordorintelligence.com/industry-reports/germany-data-center-market - AssetPhysics / Colliers – 5% Investment Share
https://assetphysics.com/data-centers-will-account-for-around-five-percent-of-commercial-transaction-volume-in-2025/ - CoStar – German data centre land investment
https://www.costar.com/article/2060323177/large-data-centre-investment-in-germany-totals-more-than-1-billion-in-2025 - Reuters – Power constraints EMEA
https://www.reuters.com/business/energy/power-supply-constraints-slowing-emea-data-centre-rollout-report-says-2025-11-06/ - JLL – 2026 Data Center Outlook
https://www.jll.com/en-de/insights/market-outlook/data-center-outlook - Knight Frank – EMEA Data Centre Report
https://www.knightfrank.co.uk/research/article/2025-10-20-emea-data-centres-report
