The German Government’s Data Centre Strategy: Holistic Opportunities for the Economy, Investors and the Public Sector in the Digital Transformation – Noerr Insight No. 2

On 18 March 2026, the German government adopted its national data centre strategy, thereby implementing a key initiative of the coalition agreement for the 21st legislative period: the targeted strengthening of Germany as an attractive, leading and sovereign data centre location. In the run-up to this, the Federal Ministry for Digital Affairs and State Modernisation had already initiated an online consultation to incorporate the perspectives of stakeholders from business, academia and society into the development of the data centre strategy as part of a broad participatory process.

The strategy, developed in collaboration with the Federal Ministry for Economic Affairs and Energy, the Federal Ministry of Finance, the Federal Ministry of Research and Technology and Space, and the Federal Chancellery, aims to expand Germany’s digital transformation in a sustainable manner, in particular by doubling data centre capacities in Germany by 2030. The strategy therefore begins by assessing the status quo, positioning Germany within the context of international competition and analysing both global market developments and national strengths and weaknesses. Building on this, three action areas are identified: energy and sustainability, location and space, and technology and sovereignty. For each of these areas, the strategy sets out specific objectives and identifies measures for their implementation. Finally, the next steps for the practical implementation of the strategy are outlined.

Whilst the first article in this series presented the key content, objectives and opportunities of the data centre strategy and action area 1, ‘Energy and Sustainability’, this second article will examine action area 2, ‘Location and Space’, in greater detail. The third article explains action area 3, ‘Technology and Sovereignty’, before the fourth article examines the economic opportunities and business potential arising from the data centre strategy and draws conclusions.

Alongside the action area “Energy and Sustainability”, the availability of suitable sites is a key success factor for the expansion of data centre capacities. Action area 2 of the data centre strategy, ‘Location and Space’, therefore aims to specifically improve the framework conditions for private investment. To this end, the ‘Location Promotion Act’ was passed in February 2026 and tax incentives were introduced through the ‘Act on an Immediate Tax Investment Programme to Strengthen Germany as a Business Location’.

It is crucial that suitable sites are identified at an early stage, secured through planning and developed with the necessary infrastructure in order to be attractive to investors and local authorities. High-performance gigabit networks are of particular importance here, as the efficient operation of data centres is not possible without them. Against this background, the strategy sets out two key objectives: the identification and enhancement of the attractiveness of suitable sites (see point A.) and the acceleration of planning and approval procedures (see point B.).

A. Identification and enhancement of the attractiveness of suitable sites

The targeted development and provision of suitable sites is to take place in close cooperation with the federal states, local authorities, network operators and business development agencies. Local authorities play a key role in this, as their support is crucial to the success of location projects. Accordingly, economic incentives are to be strengthened and local authorities’ scope for action expanded.

A key initiative is the development of a framework for designating preferred sites for data centres. The focus will be particularly on so-called brownfield sites – that is, areas that are already in use or developed.

In parallel, the Federal Government plans to draw up a standardised set of criteria for assessing and prioritising potential sites. This is intended to serve as the basis for guidance for local authorities and, in particular, to take sustainability aspects into account. The background to this is that many regions have so far had only limited experience with the establishment of data centres and therefore require support with location policy.

Another key component is the expansion of high-capacity fibre-optic and mobile communications infrastructure. The expansion of telecommunications networks has already been enshrined (until 31 December 2030) as a ‘matter of overriding public interest’ in Section 1(1), first sentence, of the Telecommunications Act and is to be further strengthened as part of the forthcoming amendment.

Finally, the introduction of a special allocation formula for the trade tax base of data centres is also being examined, in order to enable a more balanced distribution of tax revenue among the municipalities concerned and to create further incentives for businesses to locate there.

B. Acceleration of planning and approval procedures

Complex and protracted planning and approval procedures have hitherto represented a major obstacle to the expansion of data centres. The Federal Government is therefore pursuing the aim of accelerating these procedures without undermining existing environmental standards.

To this end, a so-called ‘practical review’ is initially planned, to be carried out in collaboration with operators. The aim is to identify potential for optimisation within the existing legal framework and, where necessary, to make targeted adjustments. The focus here is particularly on building planning law, building permit procedures and requirements under immission control legislation.

In addition, ‘best practices’ are to be systematically recorded, compiled and exchanged between the federal and state governments. The Federal Government intends to promote dialogue between the stakeholders involved in order to disseminate successful approaches and make approval processes more efficient overall.

Companies are advised to familiarise themselves with the key elements of the data centre strategy and the individual areas of action. Furthermore, current developments, in particular the implementation of the data centre strategy’s provisions in specific legislative proposals, should be monitored. In this Noerr series of articles, we are closely tracking these developments. In this third part of the series, we take a closer look at the third action area in the data centre strategy: “Technology and Sovereignty”.