German firms push for domestic data centers amid cloud‑security concerns

A Bitkom‑commissioned survey of 603 German companies with at least 20 employees found that 97 % consider the location of cloud‑service providers' servers a decisive factor, and 100 % would prefer their data to be stored and processed within Germany. Companies cite the need for internationally competitive electricity prices, rapid grid connections and faster permitting for new data‑center projects. Bitkom President Dr. Ralf Wintergerst said domestic data centres are essential for AI‑gigafactories and the EU Cloud & AI Development Act.

Separately, analysts warn that the earlier "cloud‑first" strategy is giving way to a "cloud‑maybe" approach. Geopolitical tensions, the AI boom and regulatory pressures are prompting firms to seek digital sovereignty through on‑premises infrastructure. Local storage can reduce latency for AI‑driven decisions, lower exposure to price volatility and improve compliance with security and data‑protection rules, while offering more predictable costs compared with usage‑based cloud billing.