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Data centers and the digital economy suffer from high electricity prices

High electricity prices are putting massive pressure on data centers and network operators, according to Bitkom. The digital association warns of the consequences of winter power shortages for data centers and the entire economy.

According to Bitkom, there are around 3,000 data centers in Germany with an annual power demand of 16 billion kilowatt hours. By 2030, the Digital Association with annual growth of 3.5 to 5 percent. Given the immense energy demand, high electricity costs are severely impacting the industry.

"The very high electricity costs compared to other European countries have been a decisive locational disadvantage for German data centers for years. The sharp rise in energy prices following the Russian war of aggression against Ukraine is exacerbating the situation for the digital economy as a whole,"

says Bitkom CEO Bernhard Rohleder.

“Consistent and targeted steps to relieve the digital economy from exploding energy prices are necessary to advance digitalization and strengthen Germany’s digital sovereignty.”

It is important to further increase the energy efficiency of the facilities. The computing capacity installed there per kilowatt hour of electricity consumed has already increased almost fivefold since 2010, Rohleder said.

“Data centers are threatened by feared power shortages in winter”

The digital association also points out the relevance of the problem for the entire German economy: For example, electricity costs are being passed on to companies that rely on IT infrastructure and servers. Data centers and telecommunications networks are the backbone of digitalization in Germany, according to Rohleder.

In view of the tense situation on the energy markets, Bitkom is also calling for data centers with system-relevant IT infrastructure to be given priority in the event of an impending power shortage in autumn and winter.

"Data center operators are under enormous threat from anticipated power shortages in winter. Most of them already have their diesel tanks filled to capacity for emergency power,"

says Rohleder. A failure of communication networks and data centers would therefore have serious consequences for the economy, society, and the state. Bitkom calls for a comprehensive crisis strategy to ensure the energy supply for systemically important purposes.

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