News

The data centre market is one of the most dynamic segments of European commercial real estate. Driven by cloud migration, AI workloads, and data sovereignty requirements, demand for computing capacity is growing at a pace that hardly any other asset class can match.

Over the past decade, Germany has established itself as one of Europe’s core data center markets. Frankfurt, Berlin, and increasingly secondary cities have attracted hyperscalers, colocation providers, and institutional investors alike.

As the MIPIM is currently taking place in Cannes, the international real estate industry once again gathers for one of the most important annual meetings of investors, developers and institutional capital.

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.

Digital transformation is driving unprecedented demand for modern data centres. As investors, we are witnessing remarkable growth in this asset class.

In an environment of fluctuating inflation, capital costs, and regulatory pressure, developers are seeking stability, predictable returns, and scalable growth.

We are witnessing a historic turning point in the German data center real estate market. Total market volume has surpassed the USD 10 billion threshold reaching approximately USD 10.41 billion in 2026.

The German real estate market enters 2026 with renewed optimism. The European Central Bank has concluded its aggressive interest-rate hiking cycle, allowing financing costs to stabilize at a more predictable level.

With the rapid advancement of artificial intelligence (AI), demand for data center infrastructure in Europe is accelerating at an unprecedented pace.