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Coburg – Precision Infrastructure for the Industrial Edge

Executive Summary

Coburg is a strategic location for industrial enterprises requiring data residency and low latency for automated production environments. This market provides a stable alternative to overcrowded metropolitan hubs, ensuring high-performance computing remains close to the manufacturing floor.

Coburg: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBReliable access via German backbones.
Direct Cloud On-Ramps0 – as of September 2025Frankfurt serves as the primary hub.
Power Cost€0.15/kWh – as of September 2025Competitive industrial rates.
Disaster RiskLow (2.6/10) – as of September 2025Stable profile with minimal threats.
Tax IncentivesYesSupport for renewable energy projects.
Sales Tax19% VAT – as of January 2026Standard German federal tax rate.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: Carrier count: over 1. Coburg features ~1–5 regional providers focusing on high-reliability circuits for the local industrial base as of September 2025. The ecosystem is built for stability rather than mass-market volume.

Direct Cloud On-Ramps: 0, enabling access to 0 cloud regions as of September 2025. Organizations reach AWS, Google Cloud (GCP), or Microsoft Azure through private extensions or high-capacity waves to Frankfurt. Frankfurt remains the primary interconnection point for this region.

Internet Exchange Points (IXPs): No major public IXPs are located directly in the city as of September 2025. Peering traffic is handled through private interconnects or routed to the national exchange in Frankfurt to maintain consistent performance.

Bare Metal: Dedicated hardware requirements are met through regional providers such as IONOS or Leaseweb as of September 2025. These options allow for dedicated hardware deployments without the capital expense of owning physical floor space.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at €0.15/kWh as of September 2025. This rate provides a predictable cost structure compared to volatile urban markets. The energy mix is approximately 55% renewables and 45% fossil fuels, assisting enterprises with sustainability targets.

Power Grid Reliability: The local grid is well-engineered with redundant supply lines and multi-substation support. This engineering ensures continuous server operations and reduces the frequency of switching to backup generator systems.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers are positioned for direct access to the Upper Franconia industrial base. This proximity is vital for automotive and manufacturing firms requiring edge computing for real-time data processing in automated environments.

Regional Market Reach: Coburg serves a broad geography across Northern Bavaria and Southern Thuringia. It acts as a strategic choice for distributed architectures that require a footprint between the larger metropolitan hubs of Munich and Berlin.

Tax Advantage For Data Centers: The primary financial benefit is the general support for renewable energy projects. This incentive helps offset the cost of transitioning to sustainable power sources and assists with long-term energy price predictability.

Natural Disaster Risk

Coburg carries a Low risk profile with a score of 2.6/10 as of September 2025. The environment is stable, making it a safe harbor for mission-critical infrastructure.

  • River Flood (7.8): This is the primary environmental concern, managed through site selection in elevated areas.
  • Earthquake (3.7): Seismic activity is minor and well within standard building tolerances.
  • Epidemic (2.1): This represents a moderate risk factor in line with regional European averages.
  • Drought (1.3): Very low risk with minimal impact on standard data center cooling operations.

Other natural hazards are minor or do not apply to this inland location.

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