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Data Centers in Hanover

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Hanover – Stable Colocation for Northern Germany

Executive Summary

Hanover serves as a strategic secondary data center market in Germany, ideal for enterprises requiring resilient colocation for disaster recovery or to serve the industrial centers of Lower Saxony. Its stable risk profile and reliable infrastructure provide a cost-effective alternative to Frankfurt, ensuring uptime for mission-critical applications without the premium price tag.

Hanover: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional connectivity, but lacks the density of a primary FLAP market.
Direct Cloud On-Ramps0 – as of September 2025Direct access is via the primary hub in Frankfurt; private network extensions are common.
Power Cost€0.15/kWh – as of September 2025Competitive for Germany, supporting predictable operational expenses.
Disaster RiskLow (2.6/10) – as of September 2025Low exposure to significant natural hazards enhances operational stability.
Tax IncentivesYesIncentives target renewable energy use, aligning with sustainability goals.
Sales Tax19% VAT – as of September 2025Standard German Value Added Tax rate applies to services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market is served by at least 4 providers across 9 data centers, as of September 2025. While less dense than Frankfurt, Hanover offers a solid foundation of carrier-neutral facilities that support resilient, multi-carrier network strategies.

Direct Cloud On-Ramps: As of September 2025, there are no direct public cloud on-ramps within Hanover. Secure, low-latency connections to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, are established through dedicated links to the primary interconnection hub in Frankfurt.

Internet Exchange Points (IXPs): Public peering is limited within Hanover itself. Most network operators establish private peering or connect to Germany's primary Internet Exchange, DE-CIX in Frankfurt, to ensure efficient traffic exchange.

Bare Metal: Bare metal server options are available, providing dedicated compute for performance-sensitive workloads. Providers like IONOS and Leaseweb offer solutions in the German market.

Power Analysis

Average Cost Of Power: The average industrial power cost is approximately €0.15/kWh, as of September 2025. This rate, driven by a grid mix of approximately 55% renewables, provides a degree of cost predictability for long-term data center operations.

Power Grid Reliability: The power grid supporting Hanover is highly reliable and well-engineered, typical of German infrastructure. Data centers in the region are often fed by redundant power sources from multiple substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Hanover are strategically located to serve the city's significant automotive, manufacturing, and trade fair industries. Low-latency connections support industrial automation and logistics operations for businesses in the Lower Saxony region.

Regional Market Reach: Hanover provides effective digital infrastructure access for the major population centers of northern Germany, including Hamburg and Bremen, as well as acting as a strategic secondary site for businesses headquartered in Frankfurt or Berlin.

Tax Advantage For Data Centers: Germany offers financial incentives related to renewable energy support and adoption. These programs can help data center operators and their customers reduce their carbon footprint and lower operational costs associated with green energy procurement.

Natural Disaster Risk

Hanover has a low natural disaster risk profile, with an INFORM Risk score of 2.6 out of 10, as of September 2025. The primary environmental considerations are moderate risks from river flooding and minor seismic activity. The region has no significant exposure to tsunamis, tropical cyclones, or coastal flooding, making it a physically secure location for critical infrastructure.

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