Data Centers: The Growing Tech Hubs and Their Hidden Costs

Dietzenbach, a small German town of about 35,000 people, is known for its outdoor pool and a unique observation tower. It offers views of Frankfurt, roughly 12 kilometers away. This location is a key reason why the US tech company Google is investing billions of dollars in a new, powerful data center.

The area around Frankfurt is a major hub for data centers in Europe. DE-CIX Frankfurt, the world's top internet exchange, handles over 17 terabits of data at peak times. This is enough data to stream a high-definition movie for nearly 3.5 million people at once. Seventy-six data centers are already in the Frankfurt region, with about 12,000 worldwide and more being built.

The internet is essential today, and its importance continues to grow. The fast rise of artificial intelligence, in particular, requires vast amounts of data. Large server capacities are needed to process and store this data. This ensures cloud services and internet applications run smoothly, making data centers the foundation of the modern internet.

These centers are also vital for the national security of developed countries. Their economies and societies rely heavily on them. Critical systems for power, healthcare, finance, and transportation depend on these internet exchanges.

Because of their importance, data centers in Germany are considered vital infrastructure and receive special protection. The German federal government's new national Data Center Strategy, released in March 2026, highlights their significance. The plan aims to double Germany's data center capacity by 2030 and reduce reliance on foreign providers.

The fact that nearly all online activity passes through data centers makes them attractive targets. Cyberattacks have increased significantly in recent years. In January 2026, the German Federal Bank reported over 5,000 cyberattacks per minute on its own systems alone. Data centers are typically well-defended against such attacks and sabotage.

These facilities are usually secured with cameras, fences, and barbed wire. This is for good reason. In March 2021, a large fire at a major data center in Strasbourg, France, showed the severe impact of physical damage. Over 3.6 million websites went offline, and many users lost data permanently because their backups were in the same location.

Data centers have also become targets in military conflicts. In the war in Ukraine, IT infrastructure has been deliberately attacked to disrupt military operations and civilian services. Data centers in the Persian Gulf have also faced attacks.

During the conflict between the US and Iran, Tehran launched drones and rockets at three facilities in Bahrain and the United Arab Emirates. These belonged to Amazon Web Services (AWS) and caused major disruptions to banking and payment systems. The Iranian leadership later shared a list of about 30 other potential targets in the Gulf, including data centers and offices of tech companies like IBM and Google.

Finding suitable locations for new data centers that can be reliably secured is increasingly important. However, local residents often oppose these projects. They are concerned about the large amounts of energy and water needed to run and cool the servers.

The hardware in data centers wears out quickly, creating significant electronic waste. Researchers are working to make these centers more efficient. They are also looking for ways to reuse waste heat and power them with renewable energy sources.

Another issue is that while investors spend billions on building data centers, few local jobs are created. These centers can cover vast areas but often employ fewer than 100 people. The economic benefits are usually indirect, attracting other businesses that need the IT infrastructure.

Protests against data centers have occurred globally. In Chile in 2024, an environmental group successfully opposed a data center for AI applications. In April 2026, Maine's legislature in the US voted for a pause on new data centers over 20 megawatts due to economic and environmental worries. Governor Janet Mills had to veto the bill.

Germany also sometimes rejects new data center projects. While construction has started in Dietzenbach, plans for a similar project in Gross-Gerau were canceled. Vantage Data Centers, a US investor, wanted to spend €2.5 billion ($2.9 billion) on a new facility there. However, the town council voted against it, citing concerns about the project's size and unclear environmental and social impacts.