“Digital Industry Association Bitkom Sees Major Competitive Advantages in Germany’s ‘Data Treasures.’ However, Public Authorities Are Lagging Behind.
According to the digital industry association Bitkom, Artificial Intelligence (AI) has irrevocably established itself within the German economy, and its triumphant advance is expected to continue into 2026. Domestic companies hold significant competitive advantages over foreign providers in this field, as they are leaders in many major industries—possessing large, detailed datasets that can be leveraged for AI applications—association president Ralf Wintergerst told the news agency Reuters on Tuesday.
"In numerous key sectors—ranging from automotive manufacturing, mechanical engineering, and the chemical industry to healthcare and financial services—Germany’s leading companies possess unique data treasures," Wintergerst added. AI enables these data to be utilized, elevating the entire economy to a whole new level: "This is where we can truly excel."
The year 2025 marked a turning point in the adoption of AI. The proportion of businesses utilizing this technology has nearly doubled compared to 2024. It now stands at 36 percent—more than one-third of all businesses. "This year, AI has achieved its breakthrough in the German economy," Wintergerst stated with conviction. This success is expected to continue into the new year, as nearly one in two companies is currently considering implementing these new technologies. Consequently, Wintergerst anticipates further substantial investments in the commercial application of this technology. According to a Bitkom study, 29 percent of companies intend to increase their spending on Artificial Intelligence.
This growth is underpinned and enabled by the availability of the necessary computing power and data transmission networks. "It is not only companies that are investing in AI deployment; there is also vigorous investment in infrastructure—such as the expansion of data centers," said the Association President. Of the total computing power currently installed in Germany, one-sixth is now required for data centers. By 2030, plans call for quadrupling these AI capacities—from the current 530 megawatts to a projected 2,020 megawatts of connected load—Wintergerst announced.
Addressing concerns raised by employee representatives that artificial intelligence would destroy jobs, he stated that the long-term effects on the workforce remain unclear. Looking back at history, he noted that while technological progress has indeed altered the nature of work activities, it has ultimately always led to increased employment. For instance, automation has taken the place of simple, routine tasks. However, Wintergerst clarified that there is now a distinct difference compared to the past: "Artificial intelligence will also be capable of taking over highly specialized tasks performed by highly qualified professionals—and that is something new."
Meanwhile, the digitalization of public administration continues to lag behind.
Just recently, the digital industry association published a survey indicating that, on average, every visit to a government agency takes more than two hours.
Applicants spend a good hour and a half traveling to and from the agency and waiting in the lobby—time that would be entirely unnecessary if services were available online. "Digital interactions with government agencies must become the standard in Germany," Wintergerst demanded. While the Federal Government has indeed set ambitious goals with its modernization agenda, he emphasized that the crucial factor is for the federal states and municipalities to now follow suit.” [1]
German Federal Government introduced sanctions on cheap Russian energy in 2022. This started destroying German industry in wake of high energy prices. Iran war increases the enrgy prices in Germany even higher. All industry, all exports from Germany are going down the drain. Also there is no money to run energy hungry AI server farms. Germany is done. No Ai is needed. Only sleek politicians are running around. They ruined a great country.
Based on reports from early 2026, Germany is experiencing a challenging economic period marked by high energy costs and structural industrial changes.
Key findings as of March 2026:
Industrial Pressure & Energy Costs: The German industrial sector is facing significant challenges, with production in energy-intensive industries (like chemicals and metals) falling by about 20% compared to pre-2022 levels. Rising energy costs, partially driven by geopolitical issues such as conflict in the Middle East, have resulted in high electricity prices that are generally much higher than in the U.S. or China.
"Deindustrialization" Concerns: There are ongoing warnings from business leaders about "lasting deindustrialization," with some industrial firms reducing investments or relocating operations. However, economists have suggested that while structural change is happening, some fears of total industrial collapse were overblown, though 2024 and 2025 saw significant business closures and a notable decline in manufacturing output.
Economic Outlook: Despite these challenges, economists predicted a slow recovery in 2026, rather than a complete collapse, supported by government investments in defense and infrastructure. A proposed "industrial electricity price" (subsidy) aims to support energy-intensive companies starting in 2026.
AI and Energy Infrastructure: High energy costs are indeed straining the development of AI server farms, with reports suggesting that major new data center projects might face significant delays due to grid constraints. Nevertheless, companies continue to operate and invest in digital technologies, with Germany aiming for a doubling of AI data centers by 2030. Four times? Are kidding me, Mr. Wintergerst?
Political Context: The government has acknowledged the severity of the situation, with Chancellor Friedrich Merz stating that the government cannot fully shield citizens and businesses from all energy price spikes. Mr. Merz can make the situation only worse, and he is proud of this.
In summary, the German industrial model is under unprecedented pressure, leading to structural shifts and a rapidly diminishing industrial base.
1. KI-Durchbruch in den Unternehmen. Frankfurter Allgemeine Zeitung; Frankfurt. 31 Dec 2025: 18. Von Christian Geinitz, Berlin
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