Germany has developed as the fourth-largest Information and communications technologies (ICT) market worldwide, positioning itself as the primary provider of software, as well as the largest telecommunications and second-largest IT-security market in Europe.
The country’s ICT industry is highly competitive and innovation-driven. It mainly consists of very specialized SMEs but also includes large players. Germany is the leading financial location in continental Europe.
Plans for new data centers in Germany will more than double capacity and data center capacities are expected to increase by more than 500% in the coming years. However, Germany still trails other countries in digitalization and lacks a qualified workforce.
In 2025, Canada and Germany agreed to launch the Canada-Germany Digital Alliance to strengthen collaboration in artificial intelligence (AI), digital sovereignty and infrastructure, quantum technologies, and digital economy innovation. In February 2026, they signed a joint declaration of intent on AI to support the commercialization and adoption of AI in both countries.
Germany is also investing heavily in semiconductor resilience and European sovereignty, aligned with the EU Chips Act. This includes support for R&D, pilot lines, advanced packaging, and closer integration between fabs, equipment suppliers, and end user industries.
