Electricity consumption by German data centers and smaller IT installations is projected to rise sharply as demand for artificial intelligence and cloud services grows. They are expected to use around 23 billion kilowatt-hours in 2026, equivalent to the annual consumption of about 6.5 million households, according to figures from digital industry association Bitkom.
The association expects demand to reach 35 billion to 38 billion kilowatt-hours by 2030 and potentially 56 billion to 70 billion by 2035. The upper estimate is about three times the 2026 level.
Bitkom warns that limited capacity on electricity grids and lengthy approval procedures could slow the expansion of data centers. In a study by the Borderstep Institute, around 80% of surveyed operators and industry experts named restricted grid connections as the sector’s biggest challenge.
The growth is being driven in particular by generative and industrial AI. AI and high-performance computing account for about 20% of Germany’s data center capacity in 2026; Bitkom expects that share to rise to 55% by 2035. The associated connection capacity could increase from 670 megawatts to around 5,300 megawatts.
Bitkom president Ralf Wintergerst called for measures including lower electricity taxes or an industrial electricity price for data centers, as well as faster planning procedures. The association also reported that investment in German data centers is expected to reach a record 23.5 billion euros in 2026, up 57% from the previous year.
Despite rising overall demand, Bitkom says energy use is growing more slowly than computing capacity. Modern servers can be up to three times as energy-efficient as systems from 2021. The association also said that 65% of German data centers use no more than 0.1 liters of water per kilowatt-hour, while evaporative cooling—which can require more water—is used by about one-third of facilities.
Sources: Der Spiegel.