Data Centers in Deggendorf
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Deggendorf – Strategic Digital Hub in Bavaria
Executive Summary
Deggendorf serves as a stable and reliable secondary data center market within Germany's robust digital economy. It is an ideal location for businesses requiring resilient infrastructure for disaster recovery or serving southern Germany and neighboring Central European markets. The market offers a low-risk environment combined with access to Germany's excellent power and network infrastructure.
Deggendorf: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong national connectivity, with major hubs accessible for international routes. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is available via private network extensions to major hubs like Frankfurt. |
| Power Cost | €0.15/kWh – as of September 2025 | Industrial pricing reflects Germany's stable grid but is higher than some EU neighbors. |
| Disaster Risk | Low (2.6/10) – as of September 2025 | Very low exposure to significant natural hazards, enhancing operational stability. |
| Tax Incentives | Yes | General support for renewable energy investments, including solar, is available. |
| Sales Tax | 19% VAT – as of September 2025 | Standard German Value Added Tax rate applies to services and equipment. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a regional German market, Deggendorf provides access to a solid base of national and local carriers, with over 20 providers available through facilities and local metro fiber, as of September 2025. Carrier-neutral facilities form the core of the local interconnection market.
Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Deggendorf, as of September 2025. Businesses connect to cloud providers like AWS, Google Cloud (GCP), and Microsoft Azure through dedicated private network links to the primary interconnection hub in Frankfurt.
Internet Exchange Points (IXPs): Peering is primarily conducted through private interconnects or routed through major national exchanges. The closest major public peering point is the DE-CIX in Frankfurt, which is accessible via carrier backhaul.
Bare Metal: Bare metal server options are available in the region, often supplied by national providers. Services from providers such as IONOS and Leasebew can be deployed to serve workloads from facilities in nearby metropolitan areas.
Power Analysis
Average Cost Of Power: The average industrial power cost in Germany is approximately €0.15/kWh, as of September 2025. This rate, while not the lowest in Europe, buys access to one of the most reliable and advanced power grids on the continent. The power mix is increasingly dominated by renewables, which make up about 55% of the total generation.
Power Grid Reliability: Germany's power infrastructure is exceptionally well-engineered and highly reliable. The grid in Bavaria benefits from significant investment in redundancy and stability, with multiple substations typically serving key industrial areas, ensuring high uptime for data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Data centers in Deggendorf are well-positioned to support the industrial and technological base of Lower Bavaria. The location provides low-latency connectivity for regional manufacturing, automotive, and logistics companies.
Regional Market Reach: From Deggendorf, businesses can effectively serve southern Germany, Austria, and the Czech Republic. Its location makes it a strategic point for reaching into both established Western European markets and growing Central European economies.
Tax Advantage For Data Centers: Germany offers tax incentives aimed at promoting renewable energy, which can benefit data center operators investing in sustainable power sources like solar. The country's stable and predictable tax framework provides a secure environment for long-term capital investments.
Natural Disaster Risk
Deggendorf is located in a region with a very low risk of natural disasters, holding an INFORM Risk score of 2.6 out of 10, as of September 2025. This low-risk profile is a key advantage for critical infrastructure uptime and data resiliency.
The primary environmental risks to consider are:
- Coastal Flood: Rated at 8.0/10 nationally, but the direct risk is negligible for this inland location.
- River Flood: The most significant local risk, rated at 7.8/10, tied to the Danube and Isar rivers.
- Earthquake: A low probability risk, rated at 3.7/10.
- Drought: A minor concern, with a risk rating of 1.3/10.
