The German Government’s Data Centre Strategy: Holistic Opportunities for the Economy, Investors and the Public Sector in the Digital Transformation – Noerr Insight No. 3

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. With this in mind, the strategy 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 action 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 examined action area 1, ‘Energy and Sustainability’, and the second article examined action area 2, ‘Location and Space’, this third article explains action area 3, ‘Technology and Sovereignty’. Finally, the fourth article will examine the economic opportunities and business potential arising from the data centre strategy and draw conclusions.

In the third action area, “Technology and Sovereignty”, the Federal Government aims to strengthen the national and European digital economy in a sustainable manner and make it independent of non-European providers. The focus is on expanding domestic technological capacities, strengthening data sovereignty and autonomy, and systematically reducing existing dependencies.

At the same time, the data centre strategy emphasises the importance of data centres for national security. In addition to technological independence, physical resilience and self-sufficient energy concepts are therefore also important. Furthermore, it is highlighted that the use of approved and trustworthy cloud solutions is essential, particularly for government bodies. Critical components should, where possible, be sourced exclusively from reliable manufacturers.

Against this background, the strategy sets out three key objectives with regard to the second area of action: the expansion of sovereign and high-performance computing infrastructures for groundbreaking technologies (see point A.), the promotion of innovative technologies (see point B.) and the strengthening of the application and use of sovereign computing capacities (see point C.).

A. Expansion of sovereign and high-performance computing infrastructures for groundbreaking technologies

The aim is to develop and strengthen competitive European alternatives in the field of cloud and AI infrastructures. To this end, existing research networks are to be further expanded and initiatives such as so-called ‘AI factories’ successfully developed. In addition to public sector infrastructures, access to commercial IT services for public administration is also to be improved.

A key project is the establishment of at least one AI gigafactory in Germany. This is a large-scale project with a primarily commercial focus, which relies on a viable business model and is intended to meet both the needs of the European economy and public requirements. The selection of suitable projects will take place at European level as part of a funding process in the summer of 2026, with up to five locations in the EU envisaged.

In parallel, the Federal Government is advocating for suitable framework conditions at EU level, particularly with regard to the planned EU Cloud and AI Development Act. This aims to strengthen key AI ecosystems in the EU by promoting AI gigafactories, setting minimum standards for cloud services and supporting the development of advanced AI chips. An initial proposal from the European Commission is expected in spring 2026.

The expansion of national high-performance computing capacities and closer integration with future technologies such as quantum computing are also being specifically promoted.

In addition, the use of cloud technologies in public administration is to be expanded in line with the ‘Cloud First’ principle, according to which cloud solutions are to be considered in preference to traditional IT infrastructures. A strategic roadmap for migration to cloud environments is planned for this purpose.

B. Promotion of innovative technologies

A further focus is on the targeted promotion of technological innovations, particularly in the fields of AI, cloud and edge computing. The background to this is that, in key technology sectors – such as processors or storage solutions – there are currently only a limited number of competitive European offerings. The strategy therefore focuses on greater pooling of expertise within the framework of pan-European projects to drive the development of modern cloud and AI technologies.

In addition, innovative and sustainable data centre technologies are to be specifically promoted, including through relevant funding programmes.

Another key aspect is cybersecurity. Data centres are explicitly classified as part of critical infrastructure, the protection of which against attacks and disruptions is essential. The Federal Government therefore intends to further expand research and international cooperation in the field of cybersecurity and cyber resilience in order to secure and expand Germany’s existing technological strength in this area.

C. Strengthening the application and use of sovereign computing capacities

In addition to expanding capacities and technologies, their actual use is also to be promoted. Greater use of sovereign cloud and AI infrastructures is intended to help safeguard the state’s capacity to act, reduce geopolitical dependencies and promote innovation along European value chains.

At European level, the Federal Government is committed to improving the framework conditions, in particular by simplifying public procurement law and enhancing the visibility and accessibility of European providers to facilitate procurement, for example through a European marketplace.

In addition, the integration of European technologies in the development and operation of computing infrastructures is to be strengthened, for example through targeted incentives and binding requirements.

One specific project is the development of a sovereign cloud platform for AI applications as part of the ‘Deutschland-Stack’. To this end, the Federal Government is conducting a corresponding procurement procedure designed to lay the foundations for a high-performance and independent cloud infrastructure.

Finally, networking between key players – including start-ups, small and medium-sized enterprises, industry, telecommunications companies, data centre operators s and research institutions – is to be specifically improved. The public sector plays an important role here as an anchor customer.

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 the following and concluding fourth part of the series, we will examine the economic opportunities and business potential arising from the data centre strategy before drawing a summary.