Bridging the gap

the German data center market in transition

Richard Pimper is the new COO and CTO at Portus Data Centers. The industry expert – most recently in a leadership position at Huawei – discusses the transformation of the data center market, increasing power demand, energy efficiency, the colocation provider’s expansion strategy in the DACH region and why local infrastructure is strategically indispensable for companies.

Congratulations on your new role. You have more than 25 years of experience in the industry, most recently as Vice President and Chief Technology Officer Digital Power at Huawei. What do you bring to Portus Data Centers?

I bring extensive expertise at the intersection of technology, operations and economics. Furthermore, I have worked for US, European and Chinese companies and, as a non-Chinese national, held one of the highest hierarchical levels at Huawei in Europe. This means I understand the technological ecosystems of these markets, their management cultures and their differences. In our globalized world, where technology providers from different parts of the world compete in the same markets, this understanding is a clear advantage. Throughout my career, I have restructured, built, and scaled numerous companies – and this is precisely where I’m contributing at Portus Data Centers.

Why are the COO and CTO roles being combined? What synergies will this create?

The decision was both pragmatic and strategic. We have around 100 employees at three locations: Luxembourg, Munich and Hamburg. The company is undergoing a targeted restructuring phase in which technical management and operations are closely intertwined. As COO, I am responsible for day-to-day operations while as CTO, I oversee the IT strategy and technology roadmap. These areas have significant overlap. I’m even involved in the sales process as customers play a crucial role in determining which technologies we further develop. We have a holistic view of the market and our target group.

What are your specific goals at Portus Data Centers, and where are you focusing your efforts?

Portus Data Centers aims to establish itself as the largest independent mid-scale provider in the DACH market. We are not a hyperscaler, but rather closely aligned with the needs of businesses that require scalable, secure and energy-efficient infrastructure. We plan for up to 40 to 50 megawatts per location: large enough for our customers, yet flexible enough for individual requirements. 

We pursue a clear buy-and-build strategy: acquiring existing properties with potential, expanding them and simultaneously constructing new facilities on adjacent sites. Munich demonstrates this in practice: In addition to the existing data center, MUC2 is currently under construction in Kirchheim, adding 5.5 MW, bringing the site’s total capacity to 7 MW.

The data center market has changed. Which developments are shaping it most, and how is Portus positioning itself in relation to them?

We are at a turning point. The market is experiencing several shifts simultaneously: an unprecedented increase in demand due to AI workloads, a sharp rise in energy consumption, stricter sustainability requirements and the pursuit of digital sovereignty. These factors reinforce each other and present a challenge. At the same time, opportunities are emerging. Companies that have previously operated their own data centers are realizing that operating an outdated on-premises infrastructure is neither economically nor technologically viable. This is where we come in. Our added value lies in our proximity to the customer, our highly networked and scalable infrastructure and our independence. We are not part of a global corporation and that’s a crucial criterion for many customers.

The AI boom is driving the demand for computing power sky-high. How does that affect your infrastructure planning and capacity requirements?

AI clearly has an impact, because it directly changes what customers need from us. In discussions with companies – from a wide variety of industries – we’re finding that they are increasingly demanding AI-enabled infrastructure: higher power densities, specific cooling concepts and lower latency backbone networks. This is naturally factored into our planning.

When it comes to liquid cooling, for example, there isn’t one single solution but rather several options, from rear-door heat exchangers to direct liquid cooling at the CPU. Before we make a decision, we conduct in-depth technical discussions with the customer: Which server generations are they currently using? What are their plans three years from now? This level of engagement is characteristic of our approach.

In its latest "State of European Data Centres" report, the European Data Centre Association identifies electricity, not money, as the biggest obstacle. 67 percent of respondents see access to electricity as their greatest challenge. Do you agree, and how can this problem be solved?

Absolutely. The enormous increase in energy demand– driven by AI, cloud computing and digitalization – is encountering an infrastructure that simply wasn’t designed for it. The problem isn’t so much the absolute electricity supply in Europe as its distribution: power is often not generated where it’s needed. Transmitting it from A to B is expensive, time-consuming and regulatory complex. In Germany, the approval process for new transmission lines and substations is further complicated by its lengthy duration.

There are several possible solutions: First, cooperation with local energy suppliers. In Germany, models already exist where municipal utilities contribute electricity capacity together with colocation operators. Second, on-site generation, for example through battery storage and, in the future, in-house energy production to reduce grid dependency. Third, site selection: We rigorously evaluate locations based on available capacity before discussing land or permits. This excludes some cities but opens up new opportunities.

And finally, the social dimension: Data centers are often considered energy guzzlers but they can give back a great deal to the local infrastructure, for example, by utilizing waste heat for district heating networks. A well-managed data center can thus create real added value for a community.

Growing energy demand on the one hand, sustainability goals on the other. How do you secure capacity without negatively impacting the environmental footprint?

This isn’t an ‘either-or’ question but a design challenge. Our group demonstrably sources 100% renewable energy. For our cooling, we rely on free air cooling which operates in Hamburg for around 90% of the year and in Munich for a large part of the time, offering clear economic advantages: Our PUE is significantly below the industry average. This is a key selling point for customers with their own sustainability goals. Furthermore, we are planning to generate energy on-site with battery storage, photovoltaics and partners from the energy sector. For us, sustainability is not a compliance issue but a key economic driver.

With the data center expansion in Munich, you are doubling the floor space and quadrupling the capacity. Will you be finished by the beginning of 2027?

Yes, we are on schedule. The building itself will be completed this year. The formal handover will take place at the beginning of 2027. This is the brownfield-greenfield model in its purest form: We are utilizing existing infrastructure, grid connections and operational structures and building upon them in a scalable way. Munich is therefore a showcase for our entire expansion strategy.

You are expanding simultaneously in Hamburg and Luxembourg. Is this purely customer-driven, or are there strategic reasons?

Both, and that’s not a contradiction. The immediate expansion is customer-driven: We have demand, we’ve secured the space, and we’re building. In Hamburg, we’re developing Hamburg 4, a new building with more than 12 megawatts which is particularly attractive due to the location’s outstanding telecommunications connections. Luxembourg is considered a European gateway and is interesting for customers who want to build redundancy within the EU without relying on a second German data center. 

We secure space and power connections before we even know which specific customer is coming. This is a conscious bet on future demand. Given the market dynamics, this makes sense. Anyone who waits until a customer comes along with an inquiry and only then looks for space and capacity has already lost.

You repeatedly emphasize regional proximity – why is it so important for Portus Data Centers?

Not every company wants to or can concentrate its critical infrastructure in, for example, Frankfurt. The capacity situation there is already strained. Our locations in Munich, Hamburg and Luxembourg are economic powerhouses with their own large corporate landscapes. Local presence means low latency, direct personal customer relationships and the opportunity to physically visit the data center and inspect the hardware. For strictly regulated industries like financial services or healthcare this is essential. 

Add to that data sovereignty. In a German data center operated by a European company, German law and the GDPR apply without any room for interpretation. This is a crucial criterion.

Let's talk about the future. Are there further projects planned in Germany and neighboring markets? Are you going on a shopping spree soon?

We are indeed active and looking around. We have clear criteria for this. First and foremost is the available capacity; that means: no power, no discussion. Equally crucial is the possibility of securing additional building land directly adjacent to an acquired property to implement our brownfield-greenfield strategy. The permitting situation and the political environment must also be right. In some cities power is available but the municipality doesn’t want a data center. We will invest where we can add value with our experience – in strategic locations in Germany and neighboring countries.