How Did Frankfurt Become Europe’s Data Center Hub [AIDC Era Coexistence Guide] ⑪

[Interview] Jan Fiedler, Vice President of FrankfurtRheinMain GmbH
Strengths in Network Infrastructure and Data Security
"Many Business Opportunities for Korean Companies in AIDC"

Editor's NoteThe government has announced a plan to establish a total of 18.4GW of data centers by 2035 as part of the three major mega-projects in the era of artificial intelligence (AI), aiming to make this a driving force for the nation's future growth. While data centers were once just facilities supporting IT services, web applications, and data storage and sharing, they are now evolving into industrial platforms that produce and supply AI computational resources. However, despite a shared understanding that they are core infrastructure determining national industrial competitiveness, there remain numerous challenges before the expansion of AI data centers (AIDC) can be realized. The Asia Business Daily is covering overseas cases from Finland, Denmark, Germany, and the Netherlands, which have successfully addressed issues such as electricity supply, permits, water usage, and community conflicts around AIDC, to find solutions for how such centers can become assets coexisting with local communities in Korea.

Vice President Jan Fiedler of the RheinMain International Investment Promotion Agency in Frankfurt, Germany, giving an interview to The Asia Business Daily on the 17th of last month (local time). Photo by Seo Sojeong.

"Frankfurt houses the largest number of data centers in Germany. Demand is surging."

Jan Fiedler, Vice President of the Frankfurt Rhine-Main International Investment Promotion Agency in Germany, stated in an interview with The Asia Business Daily on the 17th of last month (local time), "Within Frankfurt, there are currently 138 data centers, the highest number in Germany," adding, "This is overwhelmingly more than the 44 located in the capital, Berlin."

 

Germany has one of Europe's top data center markets, and its growth trajectory has been steep in recent years. As of last year, there were over 2,000 data centers with capacities of 100kW or more in operation, including nearly 100 large facilities with over 5MW. The total installed capacity was 2,980MW, a 9% increase from the previous year, and surpassed 3,000MW earlier this year. By 2030, this is expected to reach 5,000MW. Frankfurt (F), along with London (L), Amsterdam (A), and Paris (P), forms the 'FLAP' group—Europe's four key data center markets.

Recently, with a surge in data center demand in Frankfurt, Europe's internet hub, construction is expanding to nearby cities such as Hanau and Mainz. Vice President Fiedler noted, "Japanese IT company NTT is undertaking a large-scale hyperscale data center project near Nierstein, close to Mainz," adding, "It will become one of the largest data center campuses in the world." NTT is converting an extensive 750,000-square-meter former military base into a state-of-the-art digital infrastructure space. Massive investment estimated at more than 5 billion euros (over 7 trillion won) will be poured into the hyperscale campus, which will have IT power capacity of up to 500MW.

High Data Center Demand Due to Clustered Global Banks

Frankfurt's status as a data center hub is fundamentally due to its connectivity. The decisive factor is that Frankfurt is home to DE-CIX, one of the world's highest-traffic internet exchange nodes. Thousands of global telecommunications companies (ISPs), content delivery networks (CDNs), and large enterprise networks are directly connected to DE-CIX, minimizing unnecessary traffic routing. Additionally, the presence of the European Central Bank (ECB) has attracted hundreds of global bank headquarters, making Frankfurt the center of European finance. Because financial trading and payment systems cannot tolerate delays even at the millisecond (ms) level and emphasize security, high-performance data centers are concentrated near the financial district.

Vice President Fiedler explained, "Although real estate taxes are high, there is unceasing interest in building data centers in Frankfurt. The primary reason is the network infrastructure," analyzing that "As data centers cluster, there is a tendency for concentration to draw even more demand." He also noted that demand for data centers has soared recently, driven by the rapid development of artificial intelligence (AI) and physical AI. "In Frankfurt, the scarcity of land has become so intense that companies that previously secured land are sometimes forced out to make room," he said, "Data centers are now spreading into accessible areas 15 to 25km east of downtown Frankfurt, such as Hanau, Maintal, and Erlensee."

Vice President Jan Fiedler of the Frankfurt Rhine-Main International Investment Promotion Agency in Germany was interviewed by The Asia Business Daily on the 17th of last month (local time). Photo by Sojeong Seo.

The second factor is data security. Germany has operated the Federal Data Protection Act (BDSG) even before the European Union's General Data Protection Regulation (GDPR) came into effect. Global corporations and public institutions that prioritize data security and privacy prefer storing data in German data centers, where data sovereignty is ensured. Since Germany enforces strict personal data regulations, companies concerned about data leakage strongly favor building data centers there.

Vice President Fiedler believes this presents a significant opportunity for Korean companies stepping up in the AI data center business. "Korea is home to leading semiconductor and AI companies such as SK hynix, and as Germany expands its data center capacity, there will be many business opportunities," he said. "Frankfurt am Main and its surroundings now form the largest business cluster for Korean companies anywhere in Europe, and local governments are vying to attract more Korean firms."

This special report was produced with support from the Press Promotion Fund, financed by government advertising revenue.

This content was produced with the assistance of AI translation services.