Germany will become a hotspot for new data centre development as foreign companies and investors are increasingly searching for space in — and investment into — the sector.

Patrick Brinker, head of real estate investment management at Hauck Aufhäuser Lampe (HAL), says Germany is poised to capture the majority of international capital looking to invest into the European data centre market for three major reasons. Firstly, he says, as the strongest economy in Europe, there is huge demand for data storage. Secondly, Germany has the strongest data security laws in Europe, attracting companies from outside to host their data in the country. Thirdly, the country’s polycentric structure is working to the advantage of data centre investors as they can spread their capital across multiple upcoming locations.

Frankfurt, which is currently the main hub for data centres in Germany, is struggling to keep up with demand, mainly due to its power grid running at almost full cap