Frankfurt’s Data Center Boom Fuels Economy but Faces Growing Risks
Over the past five years, the Rhine-Main region’s data center sector has doubled its GDP. Tax contributions from the industry reached €405 million in 2023, with €108 million staying in local municipalities. For every euro generated, an extra 51 cents circulates in the wider economy—24 cents of which remains in the region.
Frankfurt’s data center sector remains a key economic driver, but its future hinges on addressing critical challenges. Without improvements in energy costs, permitting efficiency, and grid stability, the region risks losing businesses to competitors. The next few years will determine whether the city can sustain its growth and digital leadership.
