Edge
meets connectivity
How regional data centers create competitive advantage
Real-time data processing, GDPR compliance and low latency often determine competitiveness. Edge computing provides the answer. However, building their own infrastructure is difficult for many companies to manage. Regional colocation data centers offer professional infrastructure in strategic locations – with carrier-neutral connectivity, full data control and no dependency on hyperscalers.
Companies face the challenge of developing applications that process data in real time and react instantly. If the transfer to the cloud is delayed, critical business processes stall or competitive disadvantages arise. AI further exacerbates the situation.
Regional data centers address this problem: Data processing takes place where the data originates, at the “edge” of the network, close to the end device. Where centralized clouds are too slow, these more local ‘edge’ data centers enable time-critical processing with latency often below ten milliseconds.
While traditional data centers often rely on centralization and massive scaling – a typical hyperscaler data center comprises tens of thousands of servers across several thousand square meters – edge data centers are generally more compact, decentralized and located close to the user.
Relieving the burden on central clouds and networks
The advantages of local data processing extend far beyond low latency. Bandwidth savings, for example, are often underestimated. Consider a modern factory producing several terabytes of machine data, sensor readings and quality metrics daily. Transferring all this data to central clouds would be inefficient in terms of bandwidth and cost.
Relieving the burden on central clouds and networks is crucial with increasing digitalization. According to Gartner, the number of connected IoT devices will rise to over 75 billion by the end of 2025. If all these devices were to send their raw data to central clouds, network capacities would quickly be exhausted.
Application scenarios
Due to AI, demand for data processing from within a company’s own premises is increasing rapidly. The use cases for on-premise data centers are diverse: telecommunications providers, IT service providers, global technology and social media companies, healthcare, gaming, and all industries that want to efficiently host their IT infrastructure in a secure location close to their own critical operations.
Furthermore, on-premise data centers combine compliance with innovation, security with flexibility – a crucial advantage in a fragmented digital world.
Edge data centers and colocation: Local, practical, efficient
However, building and operating their own infrastructure pushes many companies to their limits. Even small edge locations require significant initial investments and sufficient skilled personnel, which isn’t always readily available.
With colocation, on the other hand, companies utilize professional data center infrastructure while retaining control over hardware and data, making it a genuine alternative, and not only for medium-sized firms. The provider supplies space, power, cooling, physical security and network connectivity, and companies always retain data sovereignty.
Moreover, the cost structure is transparent and predictable: footprint (per rack or kilowatt), power consumption-based pricing, network ports and optional managed services. Monitoring tracks server status, power consumption, temperature and network connectivity around the clock. Automatic alerts are triggered in case of anomalies and direct escalation occurs in emergencies.
Compliance and resilience
Digital sovereignty means more than just storing data domestically: It represents control over digital value chains, independence from non-European providers and the ability to operate core data processes within one’s own legal jurisdiction. Local data centers are the foundation of this autonomy and essential for regulatory compliance: GDPR, the Telecommunications Act and industry-specific regulations such as TISAX or KRITIS require verifiable data localization in regional data centers.
The NIS2 Directive tightens cybersecurity requirements across the EU and increases the burden of proof for risk management and incident response. Local data storage also offers resilience: Edge locations continue to operate autonomously, even during connection failures to the central cloud – a critical advantage in the event of network outages or cyberattacks.
Connectivity: The underestimated success factor
Edge computing thrives on connectivity. An edge location without excellent network connectivity is worthless. This highlights a key difference between colocation providers. Carrier-neutral data centers allow customers to freely choose from dozens of network providers. This fosters competition, reduces costs and enables optimal network access. There are multiple connections to various destinations. For example, a company can choose one provider for connecting to AWS, another for Azure and a third for connections to its own sites.
Direct peering options and access to internet exchanges are invaluable. Companies connected to DE-CIX can reach thousands of networks worldwide without detours via transit providers. This significantly reduces both latency and bandwidth costs.
For edge scenarios with 5G integration, proximity to telecommunications providers is crucial. Colocation data centers where Deutsche Telekom, Vodafone or other carriers have a presence can enable short paths between the mobile network and edge infrastructure.
Strategic locations for edge infrastructure
The geographic location of edge sites is critical. Germany offers several strategic advantages: Frankfurt am Main, as Europe’s largest internet exchange (DE-CIX), guarantees excellent connectivity. Munich scores points with its direct access to southern German economic regions and excellent fiber optic infrastructure, while Hamburg, as a gateway to Scandinavia and with its proximity to offshore wind farms, is relevant for the energy and logistics sectors.
Luxembourg is also gaining increasing importance as a data center location: The Grand Duchy is centrally located in Europe, near Germany, France, and Belgium, and, as an international financial center, offers a stable legal and economic environment. With the presence of DE-CIX Luxembourg, companies benefit from direct access to one of Europe’s most important internet exchange points.
Data centers in these regions achieve latency times of under five milliseconds to the most important German and European economic regions.
Portus Data Centers: Regionally rooted, internationally networked
The Portus Data Centers (PDC) Group has been offering carrier-neutral edge colocation services throughout Germany and the surrounding regions since 2020. The provider currently operates at three strategic locations: Hamburg, Munich and Luxembourg.
The data center operator enables data processing at the company’s locations – wherever customers need it. The growing demand for edge computing and regional data processing requires flexible, cost-effective solutions for operating critical IT infrastructure.
“We work closely with our customers to support their individual requirements and ensure that both their business and their end customers’ needs are met,” emphasizes Falk Weinreich, Group CEO of Portus Data Centers. “We create a state-of-the-art platform for companies of all sizes – regionally anchored, but with excellent international connectivity. The goal is to offer the operation of a high-performance, low-latency IT infrastructure – a key prerequisite for business success.”
Outlook
Regional data centers are not just about technology, but drivers of business, innovation and digital sovereignty. They strike a balance between global services and local needs.
Data center operators offering modern edge colocation services provide their customers numerous advantages: professional infrastructure without vendor lock-in, data sovereignty without expensive in-house investments and flexibility with optimal connectivity. Businesses looking to adopt edge strategies can now secure real competitive edge.
Sources:
Bitkom: Data Centers in Germany – AI Drives Growth, January 2025: www.bitkom.org/Presse/Presseinformation/Rechenzentren-Deutschland-KI-treibt-Wachstum
Gartner: What Edge Computing Means for Infrastructure and Operations Leaders: www.gartner.com/smarterwithgartner/what-edge-computing-means-for-infrastructure-and-operations-leaders
Bitkom: Industry 4.0 – Companies Deploy AI in Production, March 2025: www.bitkom.org/Presse/Presseinformation/Industrie-4.0-Unternehmen-KI-Produktion