The maincubes FRA01 colocation data center in Frankfurt, GermanyAccording to a brand-new study released by Information Services Group (ISG), a global technology research and advisory firm, enterprise demand for cloud computing in Germany is growing so quickly that it will account for more than half of the nation’s data center capacity by 2025, up from roughly a third today.
Organizations investing in digitalization, particularly to improve their resilience and agility, are driving the rising demand for cloud services, according to the 2022 ISG Provider Lens Next-Gen Private/Hybrid Cloud – Data Center Services & Solutions report for Germany.
This development is part of the consistently expanding European market for IT and business services, which saw managed services grow by 24 percent year over year in the first quarter of 2022.
“German companies’ growing use of managed services, especially IT and business process outsourcing, is part of a boom happening across much of Western Europe,” said Alexandra Classen, EMEA partner at ISG. “The biggest demand is for infrastructure services and application development and maintenance.”
Colocation Data Centers Germany
The ISG report claims that since businesses and managed hosting providers depend on them more and more, there is a growing need for colocation data centers in Germany. One reason is that colocation facilities are better able to deliver low-latency networks with a maximum delay of 35 milliseconds, which more businesses are starting to require.
ISG claims that the massive cloud migration of German businesses is reflected in the growth of network node traffic and the size of new data centers in the nation. One of the largest DE-CIX nodes in the world, in Frankfurt, saw an increase in throughput from 9.1 Tbit/s in 2020 to 10 Tbit/s in 2021. Nodes in Hamburg and Munich both experienced growth.
In order to be viable, new data centers must be at least 5 megawatts in size, according to the ISG report, and Germany now has 90 of these facilities, which would account for half of the nation’s data center capacity.
Private and Hybrid Cloud Usage
According to the survey, data center operators are implementing cutting-edge passive cooling systems and improving data center computing’s energy efficiency in recognition of the enormous energy requirements of data centers, which account for around 3 percent of Germany’s electricity consumption. While 1 is the optimum number, the average Power Usage Effectiveness (PUE) of a new data center was 1.63 in 2020, but it has since dropped to 1.3 and below.
Other trends in private and hybrid cloud usage are also examined in the research, such as the increasing significance of multi-cloud and multi-platform computing landscapes and the difficulties of compliance.
The 2022 ISG Provider Lens Next-Gen Private/Hybrid Cloud – Data Center Services & Solutions report for Germany assesses 100 providers’ performance in six quadrants: Colocation services for large accounts as well as colocation services for the midmarket. Managed services for large accounts as well as managed services for the midmarket.