Aroundtown, one of Europe’s major commercial property groups, is preparing to enter Germany’s booming data infrastructure market with its first dedicated data center. The company announced that the facility is expected to go live within three years, marking a strategic shift toward high-demand digital assets as cloud computing, AI workloads, and data-driven services continue to grow across Europe.
The real estate group, known for its extensive portfolio of office buildings and hotels, sees data centers as a natural expansion path in a market reshaped by technological change. Germany, in particular, has become a central hub for data processing and cloud services due to strict regulatory standards, strong industrial demand, and its position as Europe’s largest economy. Aroundtown aims to capitalize on this trend by repurposing existing assets into high-performance digital infrastructure.
The upcoming facility will be located near Frankfurt, a region widely recognized as the core of Europe’s data connectivity ecosystem. The area hosts DE-CIX, one of the world’s largest internet exchanges, making it an ideal location for companies requiring low-latency, secure, and scalable digital operations. Aroundtown plans to convert an existing property into a fully equipped data center, ensuring faster delivery and reduced development costs compared to building a site from scratch.
Company officials emphasized that growing demand for cloud computing, edge processing, and AI training has reshaped occupier needs. Traditional real estate categories like office spaces face continued uncertainty, but data centers represent a stable, long-term revenue stream with strong leasing potential. This shift aligns with broader industry trends, as global investors redirect capital toward digital infrastructure to capture rising energy and connectivity demand.
Aroundtown stated that this initial project is only the beginning. It plans to evaluate additional locations across Germany and other European markets as it builds a new data-center-focused business line. The company is currently studying energy requirements, power availability, cooling capabilities, and potential tenant partnerships, all of which are critical factors in a sector where operational reliability and uptime are essential.
The decision comes at a time when Europe is experiencing a surge in data center development, driven by AI adoption, government digitalization programs, and increased data sovereignty rules. Germany’s strict privacy and security laws also push more enterprises to keep their data within national borders, further strengthening demand for local facilities.
Despite the optimism, the company will face challenges. Data centers require significant power and cooling resources, and Germany’s energy transition introduces complexity in long-term planning. Local communities are also becoming more vocal about the land and power consumption associated with these projects, adding regulatory hurdles that developers must address.
Even so, Aroundtown appears confident that its existing real estate footprint offers a competitive advantage. By transforming older buildings into modern data facilities, the company can reposition assets while reducing environmental impact through adaptive reuse. Investors see this as a positive move, especially as commercial real estate markets navigate uncertain conditions.
If completed on schedule, the first facility will place Aroundtown among Germany’s emerging digital infrastructure providers and signal a deeper transformation of its business strategy. The company expects strong interest from cloud platforms, telecom operators, and AI companies seeking reliable capacity in one of Europe’s most important data markets.
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